As lawmakers continue to argue about whether wealthy Americans should take on a heavier tax burden, it turns out wealthy families are already paying the highest tax bills in three decades — even as the rest of the Nation continues to pay historically low rates.
A new analysis by the Tax Policy Center, a research arm of the Urban Institute and the Brookings Institution , reveals average taxes for wealthy families are higher now than at any time since the Congressional Budget Office began crunching the numbers in 1979. Families from middle and low-income brackets are paying less in Federal taxes than in the past.
According to an Associated Press breakdown of the data, if you’re among the top 20 percent of income earners, you’re in a group that will average 27.2 percent in Federal tax this year. If you earn $1.4 million, you’ll pay an average of 35.5 percent.
Taxes included in the cumulative assessment include income, payroll, corporate and estate taxes.
On the other hand, the bottom 20 percent of income earners will pay no Federal taxes, receiving instead Federal credits that not only zero out all their tax liability, but in fact give them a “negative” tax rate.
The report comes as Congressional Republicans continue fighting Democratic proposals to raise Federal revenues through a package of tax rate increases that affect the highest-earning segment of the population.
Read the full AP story here.