CNBC reported that the Congressional Budget Office revealed that the top 40 percent of wage earners in America pay 106% of the taxes. What about the bottom 40%? What do they pay?
They pay -9%. Yes, that’s a negative in front of that nine.
The CBO’s formula accounted for taxes that are paid with “refundable tax credits,” basically government transfers of money back in the form of social security or food stamps.
CNBC wrote that the recent stock market gains have increased the wealth of the highest 1%, but questioned whether it was fair to have these kinds of transfers that create a negative tax burden. Basically rich people aren’t paying for most of the pie, they’re paying for all of it, plus tip.