America’s richest 400 families pay a lower tax rate than average taxpayer

The wealthiest 400 American families paid an 8.2% average rate on their federal individual income taxes from 2010 to 2018, according to a White House analysis published Thursday. Those richest 400 families represent the top 0.0002% of all taxpayers. Their estimated tax rate, paid on $1.8 trillion of income over the nine-year period, is “low” relative to other taxpayers, according to the report. By comparison, Americans paid an average 13.3% tax rate on their income in 2018, according to a Tax Foundation analysis. The analysis comes as Democrats have proposed raising taxes on the rich and corporations to help fund up to $3.5 trillion of investments education, paid leave, healthcare, childcare and measures to curb climate change. The report’s findings are similar to those of a recent ProPublica investigation, which found that some of the world’s richest men (Jeff Bezos, Michael Bloomberg, Warren Buffett, Carl Icahn, Elon Musk and George Soros) pay a tiny fraction of their wealth in tax. The 25 richest Americans paid a true federal tax rate of 3.4% from 2014 to 2018, while seeing their net worth grow by $401 billion, according to the investigation, which cited confidential IRS data. Low- and middle-earners pay most of their income tax from wages on jobs. In contrast, the wealthiest Americans generate the bulk of their income from investments, which, if held longer than a year, are taxed at a lower rate than wages.

Note: For more along these lines, see concise summaries of deeply revealing news articles on income inequality from reliable major media sources.

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Author: {Want To Know}

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