From the United States to Europe and numerous different locations, wealth inequality continues to develop. In current many years, the hole between wealthy and poor has change into a chasm, sometimes sparking protests all over the world.
In America, politicians typically recommend that getting the wealthy to pay their “fair proportion” in taxes would assist to shut the hole between the haves and have-nots. However how a lot do the wealthy — and everybody else — actually pay in taxes in the present day?
Lately, the Tax Basis issued its abstract of the most recent federal revenue tax information from the IRS, which is for the tax 12 months 2022. Primarily based on its evaluation, the inspiration discovered that the highest 1% of taxpayers — which means those that earned north of $663,000 that 12 months — had a mean tax fee of 26.09% and paid a mean of $561,523 in taxes.
Collectively, the taxes paid by the highest 1% accounted for 40% of all taxes paid in 2022.
The typical tax fee of the highest 1% was a lot increased than what folks in different revenue brackets paid. Listed here are the statistics for the highest 50% and backside 50% of all taxpayers, adopted by these of all taxpayers.
The highest 50%
How this group was outlined: Taxpayers with an adjusted gross revenue (AGI) of greater than $50,399 per tax return
The typical quantity they paid in taxes in 2022: $26,959
Their common tax fee in 2022: 15.87%
The full quantity they paid in taxes (i.e., collectively) in 2022, rounded to the closest million: $2,073,129,000,000 (or practically $2.1 trillion, with a “T”)
Their collective 2022 taxes as a share of all taxes paid by taxpayers that 12 months: 97%
The underside 50%
How this group was outlined: Taxpayers with an adjusted gross revenue (AGI) of lower than $50,399 per tax return
The typical quantity they paid in taxes in 2022: $822
Their common tax fee in 2022: 3.74%
The full quantity they paid in taxes (i.e., collectively) in 2022, rounded to the closest million: $63,203,000,000 (or about $63.2 billion, with a “B”)
Their collective 2022 taxes as a share of all taxes paid by taxpayers that 12 months: 3%
All taxpayers
The typical quantity this group paid in taxes in 2022: $13,890
Their common tax fee in 2022: 14.48%
The full quantity they paid in taxes (i.e., collectively) in 2022, rounded to the closest million: $2,136,333,000,000 (or greater than $2.1 trillion, with a “T”)
