Richest families pay a 5% lower tax rate than the average American family.
According to a research published Thursday, the wealthiest families in the United States paid a tax rate that was 5% lower than the typical American.
From 2010 to 2018, the 400 wealthiest American families paid an average rate of 8.2 percent on $1.8 trillion in revenue in federal individual income taxes. According to a White House main report authored by economists in the Council of Economic Advisers and Office and Budget Management, the wealthiest families account for only 0.0002 percent of the country’s taxpayers.
In 2018, rich Americans earning between $2.1 billion and $160 billion were studied by the White House.
In 2018, the average American paid a 13.3 percent average tax rate on their earnings. According to a Tax Foundation research, the same set of taxpayers paid $1.5 trillion in income taxes in 2018.
Individuals with taxable income between $0 and $9,950 — the lowest tax band in the United States – will pay a 10% federal income tax rate in 2021. The income tax rate for single taxpayers earning $523,601 or more is 37 percent.
According to a Tax Policy Center estimate, the 8.2 percent average tax rate for wealthy Americans was also significantly lower than the 14.3 percent average tax rate in 2015.
“I’m fed up with the super-rich and large corporations avoiding paying their due amount of taxes. In response to the analysis, President Joe Biden tweeted, “It’s time for it to change.”
Democrats have proposed raising money from the rich and large corporations to pay the government’s spending plans, which include funding for education, paid leave, healthcare, childcare, and climate change initiatives.
During a press conference on Thursday, Senate Majority Leader Charles E. Schumer, D-N.Y., said, “We struck an agreement on a framework, a menu of options, that will pay for any final negotiated [legislation].”
Several aspects of the plan, such as additional carbon levies and bank-reporting requirements, are still up for debate among Democrats. According to The Washington Post, House Ways and Means Committee Chairman Richard Neal, D-Massachusetts, stated that Democrats are unlikely to impose a tax increase on inheritances passed down through generations at this time.