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MYTH #1: 47% of Americans do not pay taxes.
Fact: All Americans pay taxes.
MYTH #2: The American people and corporations pay high taxes.
Fact: The US has the third lowest taxes of any developed country in the world.
MYTH #3: Cutting taxes creates jobs and raises revenue.
Fact: Tax cuts reduce revenue and are not associated with economic growth.
MYTH #4: The US tax system is very progressive because wealthy individuals already pay a disproportionate amount of taxes.
Fact: At a time of growing income inequality, the US tax system is basically flat.
When you take into account all of the taxes that individuals pay, the truth is that our tax system is relatively flat. The top one percent of income earners receives 20.3 percent of total income while paying 21.5 percent of total taxes and the lowest 20 percent of income earners receive 3.5 percent of total income while still paying out two percent of total taxes.
In other words, wealthy individuals pay a high percentage of taxes because they earn a highly disproportionate amount of income. This is a consequence of growing income inequality in the United States, which is at a level not seen since before the Great Depression.
MYTH #5: The “Fair Tax” or a flat tax would be more fair.
Fact: The “Fair Tax” or a flat tax would make our tax system even more regressive.
Originally found on Citizens for Tax Justice. Submitted by volunteer editor Mark H.