NEW YORK (MainStreet) There's still a box of Christmas decorations at the bottom of the stairs waiting to be carried up to the attic and already the tax trauma has begun. It's like the Christmas creep to mid-October. The New Year's Eve champagne has barely lost its bubbles, and already it's tax season.
To put you in the mood to tackle your 1040, consider this fact: the top 1% of taxpayers pays more in federal income taxes than the bottom 90%. Since the early 1980s, the share of taxes paid by the bottom 90% has steadily declined, according to the Tax Foundation, the tax policy think tank.
A recent report by the non-partisan research group reveals that in 1980, the bottom 90% of taxpayers paid a little more than half (50.72%) of all income taxes. In 2011 (the most recent year the data are available), the bottom 90% paid just under a third (31.74%) of taxes. In contrast, the top 1% paid 19% of taxes in 1980 and now pays just over 35% of federal income taxes.
The report says that relying on a small base of taxpayers to assume an increasing share of the national tax burden exposes a basis weakness of the tax code.