Stop Whining! Most Americans Pay Lower Taxes Than In 1980s

Fiscal cliff debate reveals people aren’t that well informed

While the debate over the fiscal cliff rages on in Washington, most Americans appear to be poorly informed about how much of their income they actually pay in taxes. In 2010, most Americans paid far less in total taxes – that includes federal, state and local – than they might have paid in the 1980s, according to an analysis by The New York Times, which adjusted household income for inflation in its comparison. Households that earned more than $200,000 enjoyed the largest percentage declines in total taxation, the Times found. The declines are a result of Congressional cuts to federal taxation – i.e. the Bush era tax cuts – over the last 30 years. All other taxes increased for most Americans over that time. But with Democrats pushing to raise rates for the rich and Republicans seeking no real increases for anyone, it’s likely the compromise will spell an end to the era of frivolous tax cuts that contribute to the deficit. (NY Times)

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