According to Citizens for Tax Justice, the lowest 20 percent of income earners (those with an average cash income of 12,500 a year) are paying about 16.2 percent of their income in taxes. The next 20 percent (those with an average cash income of 25,300 a year) are paying 20.7 percent of their income in taxes. The top 1 percent (with an average cash income of 1,254,000) are paying more but still just 30 percent of their total income. But if you go a step above that and calculate the tax rate for the 400 richest Americans in 2008, you find that they only paid 18.1 percent of their income in taxes. That is less than those making an average of 25,300 a year.
Sunday, September 18, 2011
Our Moderately Progressive Tax Rate
For my conservative friends who have been telling me that the poorer half of Americans pay no taxes: