Clinton: Rich Not Paying Fair Share of Taxes

By Erik Berte, 28 May 2010 -- Secretary of State Hillary Clinton said she believes the wealthy aren't being taxed enough and that the economy is suffering for it. Speaking at a national security discussion, Clinton argued the rich aren't paying their fair share, but it seems data beg to differ… at least in the U.S.

"The rich are not paying their fair share in any nation that is facing the kind of employment issues whether it's individual, corporate, whatever the taxation forms are," said Clinton at the Brookings Institution.

But, as FBN's Sandra Smith reported Friday, a breakdown of taxes in America paints a different picture of who's shouldering the tax burden.

According to the Congressional Budget Office, the top 1% of all taxpayers paid 40% of all federal income taxes.  This group earned only about 23% of gross income in the country, however.

The CBO also reports that the top 20% of households paid 86% of all individual income revenue collected by the federal government.

In addition to the CBO numbers, the Tax Policy Center estimates that 45% of Americans pay no net federal income tax at all, as they receive back more in tax credits and deductions than they actually pay into the system.

All this leaves a very small portion of the population in the U.S. paying taxes for everyone else.

While some argue that government spending and stimulus is necessary to get the economy going and create jobs, others say the spending is counterproductive as it eventually requires higher taxes on higher-income individuals.  The wealthy and small businesses are job creators, and burdening these groups with heavy taxation undoubtedly makes it harder for them to add to the jobs rolls.