In fact, the 400 richest families in America pay less in taxes than ordinary people

The $1.8 trillion in taxes over a nine-year period for America's richest families is said to be "low" compared to other taxpayers.

In fact, the 400 richest families in America pay less in taxes than ordinary people
In fact, the 400 richest families in America pay less in taxes than ordinary people

According to an analysis released by the White House in September, the 400 wealthiest families in America paid an average of 8.2% in federal income tax between 2010 and 2018.

According to the report, these 400 families represent 0.0002% of the large taxpayers in the US.

The report, conducted by economists from the Council of Economic Advisers and the Office of Management and Budget, said tax payments of $1.8 trillion in income over a nine-year period were "low" compared to with other taxpayers.

For comparison, the Tax Foundation analyzed, Americans paid an average tax rate of 13.3% of their income in 2018.

The analysis comes as Democrats propose raising taxes on the rich and corporations to help fund $3.5 trillion in investments in education, paid leave, health, childcare. and measures to deal with climate change.

The report's results are similar to a recent ProPublica survey, which found that some of the world's richest billionaires: Jeff Bezos, Michael Bloomberg, Warren Buffett, Carl Icahn, Elon Musk and George Soros pay only a fraction of the cost. for taxes against their huge wealth.

From an investigation that cited confidential National Revenue Service (IRS) data, the 25 richest Americans paid a true federal tax rate of 3.4% from 2014-2018. Meanwhile, their net worth increased by $401 billion.

According to the White House, the wealthiest Americans take advantage of existing tax rules to pay a low tax rate.

Low- and moderate-income earners pay most of their income taxes from wages they work. In contrast, the wealthiest Americans generate most of their income from investments. If held for longer than one year, it will be taxed at a lower rate than wages.

The highest federal income tax rate on wages is 37%, while the highest tax rate on dividends and property (such as stocks and homes) sold for profit is 20%.

The rich can also evade taxes by withholding assets that are valued. They can pass on investments to heirs. That means that the heirs, if they sell the property, will not have to pay tax on the profits accrued over the life of the original owner.

According to the authors, the White House report examines earnings from "unrealized gains," a departure from typical analyzes that do not include this measure of earnings.

However, the 8.2% tax rate is only an estimate of the authors. This number may not be completely accurate due to incomplete data or methods. This percentage can be as low as 6% and as high as 12%.

"We note that any tax rate estimates for the wealthiest are not entirely certain and need to be screened, given current data limitations."

The analysis also doesn't take into account taxes such as the estate tax, a 40 percent tax on married couples' properties over $23.4 million.

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