Wednesday, May 12, 2010

Who is Paying Taxes?

This bar compares a pie chart and a bar graph that together reveal some interesting things about our tax system. I found the bar graph interesting because of the gradual transition the bars made from bottom to top. In the $10,000 - $20,000 range, there were still 16.4% paying taxes. In the $500,000 range, there were still 1.8% people not having to pay taxes. There are no 100%'s in any of the bars, not even for those who are making under $10,000. However, the pie chart provides another view of tax distribution. It seems that those at the top hold a hefty burden, with the people richer than 50% of the population paying more than 85% of the taxes. Thus, everyone who has to pay taxes suffers, especially those who are also poor. A solution to this would be to make a limit where people who are considered poor (don't make a certain amount of money) do not have to pay taxes. Otherwise, everyone else has to pay taxes. Since low-salary people barely contribute to taxes anyways, they should be replaced by the people who have no federal tax liability. Thus, everyone who has to (and who should) pay taxes will get to pay less.

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