The richest families pay a tax rate 5% lower than the average American

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KEY POINTS

  • Wealthy Americans Paid an Average Tax Rate of 14.3% in 2015
  • Democrats have proposed plans to raise taxes for wealthy Americans and big business

The richest families in the United States paid a tax rate 5% lower than that of the average American, according to an analysis released Thursday.

From 2010 to 2018, the top 400 richest American families paid an average rate of 8.2% on their federal personal income taxes on $ 1.8 trillion in income. The richest families represent 0.0002% of the country’s taxpayers.

The White House analysis looked at wealthy Americans who earned between $ 2.1 billion and $ 160 billion in 2018.

By comparison, average Americans paid an average tax rate of 13.3% on their income in 2018. The same group of taxpayers paid $ 1.5 trillion in income taxes in 2018, according to an analysis by the Tax Foundation.

In 2021, people who earn taxable income between $ 0 and $ 9,950 – the lowest tax bracket in the United States – have a federal tax rate of 10%. Single tax filers who earn $ 523,601 or more have an income tax rate of 37%.

The average tax rate of 8.2% for wealthy Americans was also much lower than the average tax rate of 14.3% in 2015, according to an analysis by the Tax Policy Center.

“I’m sick of the super rich, giant corporations not paying their fair share of taxes. It’s time for that to change,” President Joe Biden tweeted in reaction to the analysis.

Democrats have proposed plans to raise money from wealthy Americans and big business to fund government spending plans, which include funding for education, paid vacation, health care, child care. children and climate change policies.

“We came to an agreement on a framework, a menu of options, which will pay for any final negotiated [legislation]Senate Majority Leader Charles E. Schumer, DN.Y., said at a press conference Thursday.

Democrats are still negotiating on several issues of the plan, including new carbon taxes and new bank reporting requirements. House Ways and Means Committee Chairman Richard Neal, D-Mass., Said Democrats are unlikely to impose a tax increase on inheritance passed down between generations from now on, according to The Washington Post.

How to organize your finances for an easier tax season Photo: photo by Kelly Sikkema on Unsplash



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