The US has a budget deficit because the government spends more than it receives. Deficits have continued in Republican and Democratic administrations. Deficits can be reduced by increased taxes or decreased spending or both. This letter provides facts about taxing only the wealthy. The definition of wealth in this letter is taxpayers reporting over $500,000 of Adjusted Gross Income (AGI). Tax statistics are not provided for taxpayers over $400,00 of AGI.

US Budget Totals for 2021 (the latest year reported)

2021 US Receipts $4,047,000,000,000

2021 Outlays (payments) ($6,822,000,000,000)

DEFICIT ($2,775,000,000,000)

In 2021, 2.4% of individual income tax returns were filed showing over $500,000 of AGI. Returns over $500,000 paid tax at the highest average rate 27.8%. Returns filed over $500,000 of AGI paid tax of $1,007,000,000 or 51.3% of all personal income tax paid. If taxpayers over $500,000 were required to pay 100% of their income in taxes, the tax collected would barely cover the current deficit, assuming these taxpayers would keep earning even though all earning went to tax.

Opinion: Governments provide necessary services. In a democracy, if a small minority of citizens pay virtually all the bills, the majority could elect officials that will spend more and more.

All tax statistics are 2021 data from the irs.gov. The budget information is found at www.govinfo.gov.