Who’s Wealth Will Get “Clawed Back” First?

November 07, 2023

by Charles Hugh Smith Of Two Minds

Politically, what’s the easier play: cut entitlements, the vast majority of which flow to the bottom 90%, or “claw back” the ill-gotten gains of the top 1%?

Since we’re discussing wealth, income and taxes, let’s stipulate a few things at the start:

1. The households with the highest incomes pay the majority of federal taxes. The top 1% collected 22% of all income and paid 45% of personal federal income taxes.

The top 10% earned about 50% of all income and paid 74% of personal federal income taxes. The bottom 50% earned 10% of total income and paid 2% of income taxes. Tax Shares in Tax Year 2020.