Our income tax rates are meant to tax citizens according to how much they earn. That means the more you earn, the higher the rate and the more you pay. I mean, that’s only fair, right? But in reality, it is not so.
Did you know that the super rich in our country (those who earn upwards of $62 million a year in adjusted gross income) were taxed an average of 17.6%? This finding is according to Bloomberg. This means those who earn $62 million a year pay nearly the same effective tax rate as those who earn $85,000 a year in adjusted gross income. These 1,360 super rich people represent the top 0.001% of the population in terms of earnings but they contributed only a paltry 3.3% of all the taxes collected. On the other hand, those who earn $13 million a year paid a higher tax rate.
At the same time, if your income is in the top 2% of the country, your tax rate is at a five year low. So which group of earners contributed the most in income taxes? Find out where the money goes.
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Law Offices of Darrin T. Mish, P.A.: Tax Attorney