Income tax

It is common to hear certain politicians like Berney Sanders say that the rich must pay their fair share when referring to income tax. The total taxes collected in 2024 was $2.4 trillion and 54% or $1.3 trillion was from individual income tax. The top five percent paid $840 billion, the top 10% paid $975 billion and the top 25% paid $1.15 trillion. This leaves $115 billion for the bottom 75% and the bottom 50% paid zero tax. Even so the income gap is still widening. Two things in the news could have a significant effect on closing the gap. The first would be not renewing the Trump tax cuts. This would bring in an additional $450 billion per year and the second would be to increase the child tax cut from the present $1,750 to $5.000. If this is approved the average family of four would pay no income tax up to $120,000 of earnings. This means that 90% of working families would pay no income tax. This would cost the govenment about $300 billion per year but that would be more than offset by not renewing the Trump tax cuts. This would be a good start in reducing the income gap.