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Taxes Force American Family to Tighten Belt

1 min readBy: Arthur P. Hall, Ph.D.

Download Special Report No. 54

Special Report No. 54

Executive Summary Total taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. es on the median two-income American family continue to climb, reaching a record high level in 1995. A median-income family with two income earners can expect to pay 38.2 percent of its income in federal, state, and local taxes. A median-income family with a single earner can expect to pay 36 .2 percent, the highest percentage since 1975.

This year’s Tax Foundation report on the typical American fiunily documents income and tax levels of both single- and dual-income families. According to the Bureau of Census, the two-income married couple family is the highest earning type of family in the as well as the most common. Two-income married couples account for around 46 percent of all American families, while married couples with one spouse not working represent another third of all families.