The US tax system has become much more progressive (notice the X-axis).
The richest pay half their income in tax, the poorest nothing.
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Ok. What about wealth, not income, which actually determines political and economic power?
Fortunately for the rich people these days wealth comes from assets not incomes.
Few if any rich people pay half their income in income tax. And poor people pay plenty of taxes: sales taxes, gasoline taxes, property taxes (directly or indirectly in rent), etc.
“ We estimate income and taxes for the wealthiest group of US households by matching Forbes 400
data to the individual, business, estate, and gift tax returns of the corresponding group in 2010–
2020. In our benchmark estimate, the total effective tax rate—all taxes paid relative
The wealthy are not rich because of income. The wealthy are rich because of loans they take out against their wealth. We do not tax those loans. We should tax those loans.
The American middle class are the one not getting taxed enough, we are actually pretty progressive on higher income taxes even more so than the Yuropoors
Biggest differences comes from that we don't spend nearly as much of that on services
So while technically true it doesn't
Half their declared income - tax dodges and income hiding and workarounds they don’t report the vast majority of their income as income. So they pay sometimes even nothing (Trump) in taxes while having a net worth in the billions.
Too bad the vast overwhelming majority of the wealth generation by the richest people on the planet is entirely unaccounted for by what’s reported as “income” for tax purposes. That has gotten more skewed over time. This plot shows incomplete information.
This would be tough to do, but wouldn’t it be interesting to see real income and some estimate of utility? One could imagine that utility is (much) higher (for the wealthy) under the more progressive system.
And that allows people to think they won't have to pay and it will be "free money" for this or that.
The rich are a product of institutional design, part of which is the tax system.
Absent the systems, they would be poor. The "but for" effective tax rate is actually hugely negative.
The rich whining about tax is like saying your car's turbocharger is slowing it down.
In America, approximately 210M people work.
The top 10% earners or about 25M workers paid 1.5 trillion of the federal tax out of 2.1 trillion federal taxes taken in.
And how much do the richest people earn in income compared to their annual wealth gain?
How much money has elon musk made in the last 10 years? How much tax has he paid?
now compare to someone like me
How much money have i made? What percent of that money did I pay to taxes?
It’s less progressive but the top income quartile is making THAT MUCH MORE money right now so their numbers went up anyway.
The bot accounts like Alex here start reposting the same misleading chart to try and create a narrative that fools the moronsy. Billionaires are able to hide their income so there is nothing to pay tax on - that’s why the chart looks like it does. Don’t fall for it!
Yes, in many cases lowering the top marginal income tax rate has precisely this effect.
This is theoretically how you boost competition. It's not working right now bc of loopholes.
But isn't it that underlying economy itself is the thing that has grown more unequal since the 60s? Tax policy may have become more progressive, but not more progressive enough to overcome the rising concentration of prosperity at the top.
You know that taxation is a delete process, essential for the running of a fiat currency.
Right?
R I G H T???
Didn't the TCJA and BBB make massive tax cuts disproportionately to the highest income brackets? Does that mean in 2014 it was even more progressive?
Everyone should have a little skin in the game…so they care when tax dollars are wasted, or spent with value and return on expenditure.
No skin in the game….
It’s not all their fault, but the counter to Rights are Responsibilities.
Has there ever been a politician or movement that both wanted to increase taxes on the rich and expressed gratitude for the taxes the rich pay? (Maybe during wars?) Would be interesting how that played out.
The high earners pay the most. Super rich pay way less. The richest families in America pay almost nothing at all. Scott Galloway talked about it.
facebook.com/share/v/184XZy
But the really really rich technically don't earn any income and thus don't pay any income tax at all.
Ignoring that the rich avoid reporting half their income. It’s 50% of their reported income which is more like half of half their income or even less.
