Income Taxes, Millionaires, and Billionaires

Senator Chuck Schumer (D-NY) is reported to be "irked" that President Obama didn't take his advice and use the tax bill to "corner Republicans into defending millionaires and billionaires."  In fact, Schumer's not just irked -- he's "deeply disappointed and convinced Obama had missed a major opportunity."  You'll remember that Schumer's plan was to continue the Bush tax cuts for everyone except those earning more than $1 million a year.Presumably, Chuck is upset about income trends showing the income share of the very richest rising in recent years.  Here is data from the IRS showing that the top one percent of federal income tax filers are reporting a modestly bigger share of GDP since the 1980s.  But hey, Chuck: look at what the rich are paying in federal income taxes!  That's the red line on the chart below.Back in 1986, the top one percent reported incomes of 6.4 percent of GDP on their tax returns.  By 2007, this share...(Read Full Article)