According to newly released IRS data analyzed by the Tax Foundation, the top 1% of income-tax filers paid 40.4% of all federal income taxes in 2022. That’s a staggering figure when you consider that this group earned just 22.4% of the nation’s reported income.

Here’s a breakdown by income group:

• Top 1% (incomes above $663,000): Paid 40.4% of all income taxes

• Top 5% (above $262,000): Paid 61%

• Top 10% (above $179,000): Paid 72%

• Top 25% (above $100,000): Paid 87.2%

Meanwhile, the bottom 50% of earners paid 3% of all income taxes, earning 11.5% of total income. Many in this group qualify for refundable tax credits, resulting in a net payment from the government rather than to it.

These figures highlight that the U.S. tax system is already highly progressive.

As the expiration of the 2017 tax cuts approaches, discussions around the “fair share” of taxes will heat up. It’s helpful to base those conversations on data—not rhetoric.

Credit: Adapted from The Editorial Board, Wall Street Journal, November 29, 2024.