Facts about taxes

Today top 1% of American households collect 21% of household income or 15% of GDP. They pay 31% of their income in federal taxes so net-of-federal-tax income is 10% of GDP but their tax payments are less than 8% of GDP. However, in 1970 top 1% collected 9% of household income or 6% of GDP. Then they paid 47% of their income in federal taxes and net-of-federal-tax income was 3.3% of GDP. Since 1970 the top 1% of American households have seen after tax income as a percentage of GDP increase by more than 6% of GDP. All tax revenues from individuals have declined from 10.2% of GDP to 6.5% of GDP, a drop of 35%. Corporate tax revenue has also declined, from 3.5% of GDP in the 1960s to 1.0% of GDP today which is a drop of 2.5% or 71%. Tax evasion and under-reporting by nonfarm proprietorships and partnerships account for the loss of tax revenue equal to 1% of GDP. A carbon tax on CO2 emissions equal to $25 per ton of coal, 2.5 cents per KWH, and $.25 per gallon of gasoline would collect an additional 1% of GDP.