Yes. And we are approaching the tipping point in the US of A, because 2002 data shows that the top 1% in Adjusted Gross Income accounted for 33.7% of personal income tax receipts (federal), the top 5% accounted for 53.8%, and the bottong 50% of AGI paid only 3.6%.
If and when we get to the point where more than half of voters have little or no federal income tax liability, we are in serious economic trouble.
Critics would point out, though, that the above numbers don’t count social security and Medicaid taxes, which is true, but the data does show that the so called rich (per AGI) are paying plenty already.
As was pointed out in an earlier thread, even the stat Rush puts on his website about how the richest 10% pay 95% of the taxes, or something like that, is misleading.
Since the truly wealthy don’t EARN anything, they are effectively ‘off the grid’.
If you have $3MM in capital, and you invest it in municipal bonds, then you will have $150,000/yr. in non-taxable income on a 5% bond. You don’t have to touch the interest, and you are definitely wealthy.
In WA state, you’ll get popped on property taxes, and probably escape gasoline taxes altogether since you don’t commute.
As such, you don’t pay taxes, not really.
The AMT was always a sham on the American people, because it never touched the ‘idle’ rich. If you earned a wage, you got hit.