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IRS data shows that in 1980, the top 1% earned 8.5% of all adjusted gross income but paid 19% of all taxes. By 2006, that same group's share of AGI had risen to 22%, but its share of taxes had soared to 40%. That is, their tax bill rose faster than their income share. Incomes for the poorest one-fifth of all earners have grown on average 3.9% a year since 1994. Meanwhile, those in the middle three-fifths of incomes broadly speaking, the middle class have grown by 3.4% to 3.6% a year.
By Don