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The Rich Really Do Pay Lower Taxes Than You
Key Excerpts from Article on Website of New York Times
Posted: October 22nd, 2019
https://www.nytimes.com/interactive/2019/10/06/opinion/incom...
For the first time on record, the 400 wealthiest Americans last year paid a lower total tax rate spanning federal, state and local taxes than any other income group, according to newly released data. Thats a sharp change from the 1950s and 1960s, when the wealthy paid vastly higher tax rates than the middle class or poor. Since then, taxes that hit the wealthiest the hardest like the estate tax and corporate tax have plummeted, while tax avoidance has become more common. President Trumps 2017 tax cut, which was largely a handout to the rich, plays a role, too. It helped push the tax rate on the 400 wealthiest households below the rates for almost everyone else. The overall tax rate on the richest 400 households last year was only 23 percent, meaning that their combined tax payments equaled less than one quarter of their total income. This overall rate was 70 percent in 1950 and 47 percent in 1980. For middle-class and poor families, the picture is different. Federal income taxes have also declined modestly for these families, but they havent benefited much if at all from the decline in the corporate tax or estate tax. And they now pay more in payroll taxes (which finance Medicare and Social Security) than in the past. Over all, their taxes have remained fairly flat. The combined result is that over the last 75 years the United States tax system has become radically less progressive.
Note: For more along these lines, see concise summaries of deeply revealing news articles on government corruption and income inequality from reliable major media sources.
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