As he did in last year’s budget, President Obama has called for a cap on retirement accounts, even though the personal savings rate in America hovers in the low single digits. Obama has added a provision to encourage...
- The Tax Policy Blog
- Top One Percent Pays Twice Income Tax Rate of All Taxpayers
Top One Percent Pays Twice Income Tax Rate of All Taxpayers
Despite conventional wisdom that the Bush-era tax cuts disproportionately benefited the wealthy, the reality is that the tax burden on the bottom 99 percent has been falling for more than two decades. Indeed, the average tax rate for the bottom 99 percent of taxpayers is now below 10 percent—well below the average for all taxpayers—thanks to years of targeted tax cuts aimed at the middle class. Meanwhile, the top 1 percent of taxpayers still pays an effective tax rate that is roughly twice the average for all taxpayers.
For more charts like the one below, see the second edition of our chart book, Putting a Face on America's Tax Returns.
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