Thursday, November 19, 2009

Who pays Federal taxes (and coming Middle class tax increase) has created a wonderful graphic demonstrating who pays what percentage of the Federal income tax.

There are a few takeaways, the first is 47% of the taxable units pay ZERO taxes and the top 1% of income earners pays 40% of our taxes, the top 10% of income earners pay over 70%.

Why is this important? You can only raise taxes on the "rich" so much, there are far too many people in the middle class and a small increase on them equals a huge amount of taxes. Taxes on the middle class are going to go up.

Scott Dauenhauer CFP, MSFP, AIF