President Obama says he wants to make sure millionaires are taxed at higher rates than their secretaries. According to the Associated Press, they already are.
On average, the wealthiest people in America pay a lot more taxes than the middle class or the poor, according to private and government data, the AP says. “They pay at a higher rate, and as a group, they contribute a much larger share of the overall taxes collected by the federal government.”
The 10 percent of households with the highest incomes pay more than half of all federal taxes and they pay more than 70 percent of federal income taxes, according to the Congressional Budget Office.
Are there some “millionaire” filing units that pay taxes at rates lower than middle-income workers? a few. In 2009, 1,470 households filed tax returns with incomes above $1 million yet paid no federal income tax, according to the Internal Revenue Service.
But that's less than one percent of the nearly 237,000 returns with incomes above $1 million.
This year, households making more than $1 million will pay an average 29.1 percent of their income in federal taxes, including income taxes, payroll taxes and other taxes, according to the Tax Policy Center, a Washington think tank.
Households making between $50,000 and $75,000 will pay an average of 15 percent of their income in federal taxes.
Lower-income households will pay less. For example, households making between $40,000 and $50,000 will pay an average of 12.5 percent of their income in federal taxes. Households making between $20,000 and $30,000 will pay 5.7 percent.
The latest Internal Revenue Service figures show that In 2009, taxpayers who made $1 million or more paid on average 24.4 percent of their income in federal income taxes.
Those making $100,000 to $125,000 paid on average 9.9 percent in federal income taxes. Those making $50,000 to $60,000 paid an average of 6.3 percent.
The claim about “millionaire tax rates” rests on the fact that, for high-income families and individuals, investment income is often taxed at a lower rate than wages. The top tax rate for dividends and capital gains is 15 percent. The top marginal tax rate for wages is 35 percent, though that is reserved for taxable income above $379,150.
The Tax Policy Center also estimates that 46 percent of households, mostly low- and medium-income households, will pay no federal income taxes this year.
Associated Press refutes claims
On average, the wealthiest people in America pay a lot more taxes than the middle class or the poor, according to private and government data, the AP says. “They pay at a higher rate, and as a group, they contribute a much larger share of the overall taxes collected by the federal government.”
The 10 percent of households with the highest incomes pay more than half of all federal taxes and they pay more than 70 percent of federal income taxes, according to the Congressional Budget Office.
Are there some “millionaire” filing units that pay taxes at rates lower than middle-income workers? a few. In 2009, 1,470 households filed tax returns with incomes above $1 million yet paid no federal income tax, according to the Internal Revenue Service.
But that's less than one percent of the nearly 237,000 returns with incomes above $1 million.
This year, households making more than $1 million will pay an average 29.1 percent of their income in federal taxes, including income taxes, payroll taxes and other taxes, according to the Tax Policy Center, a Washington think tank.
Households making between $50,000 and $75,000 will pay an average of 15 percent of their income in federal taxes.
Lower-income households will pay less. For example, households making between $40,000 and $50,000 will pay an average of 12.5 percent of their income in federal taxes. Households making between $20,000 and $30,000 will pay 5.7 percent.
The latest Internal Revenue Service figures show that In 2009, taxpayers who made $1 million or more paid on average 24.4 percent of their income in federal income taxes.
Those making $100,000 to $125,000 paid on average 9.9 percent in federal income taxes. Those making $50,000 to $60,000 paid an average of 6.3 percent.
The claim about “millionaire tax rates” rests on the fact that, for high-income families and individuals, investment income is often taxed at a lower rate than wages. The top tax rate for dividends and capital gains is 15 percent. The top marginal tax rate for wages is 35 percent, though that is reserved for taxable income above $379,150.
The Tax Policy Center also estimates that 46 percent of households, mostly low- and medium-income households, will pay no federal income taxes this year.
Associated Press refutes claims
No comments:
Post a Comment