The answer is by no means straightforward.
It depends on what you are measuring and how you are doing it. And the choices Saez and Zucman have made were necessarily arbitrary and more than a little controversial. Start with what they are measuring.cloudmedicaltranscription.com/components/lubbock/9319.php
America's richest families now pay a lower tax rate than the middle class - CBS News
They say they are looking at all US taxes including state and local taxes, federal individual and corporate income taxes, payroll taxes, estate taxes, and excise taxes for That brings us to the first problem: There are no official tax data for millions of people still are filing their returns. So Saez and Zucman built their analysis on older data and extrapolated to Then there is the matter of what they were measuring.
While Saez and Zucman used an extremely broad definition of taxes, they left out refundable tax credits like the earned income tax credit EITC and the child tax credit CTC. Zucman has argued elsewhere that the refundable portion of these tax credits really is spending and should be excluded from any tax analysis. But there is a difference. They are administered by the IRS.
Read more in Inequality, Opportunity and Poverty
Yes, they feel in many ways like spending. But they were created to help offset the burden of payroll taxes and should be treated like taxes for the purposes of distributional analysis.
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And TPC concludes that the lowest income 20 percent of households pays an effective federal tax rate of just 2. The next 20 percent pays an effective federal rate of 7. State and local taxes are less progressive than federal taxes, and some are regressive. That is a little more than the In fact, the tax primarily is paid by estates of multi-millionaires and billionaires. The vast majority of deaths — Download this document in PDF format.
Are US Billionaires Really Paying A Lower Tax Rate Than Working People? Probably Not.
Fact Sheet: Taxing Wealthy Americans. Today, the top rate is The average federal income tax rate of the richest Americans was just 20 percent in CEOs of major corporations earn nearly times more than an average worker. The largest contributor to increasing income inequality has been changes in income from capital gains and dividends. When they take unfair advantage of the many loopholes in the tax code the rest of us pick up the tab.
Instead of cutting Social Security and Medicare, we should ask the wealthy to give up a few tax loopholes so that we can make sure everyone has a secure retirement. How the rich avoid paying taxes — and what to do about it Tax income from investments like income from work.
Why do the super-rich pay lower taxes?
Billionaires like Warren Buffett pay a lower tax rate than millions of Americans because federal taxes on investment income unearned income are lower than the taxes many Americans pay on salary and wage income earned income. Because Buffett gets a high percentage of his total income from investments, he pays a lower income tax rate than his secretary.
Currently, the top statutory tax rate on investment income is just To reduce this inequity, we should raise tax rates on capital gains and dividends so they match the tax rates on salaries and wages. The rich are able to get much bigger tax breaks for the same tax deductions taken by the middle class.
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For example, a wealthy family living in a McMansion gets a much bigger tax deduction on the interest on their large mortgage than a middle-class family gets on the interest on their small mortgage on a two-bedroom house.
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