From the United States to Europe and countless other places, wealth inequality continues to grow. In recent decades, the gap between rich and poor has become a chasm, sometimes causing protests around the world.
In America, politicians often suggest that making the rich pay their “fair share” of taxes would help close the gap between the haves and have-nots. But how much tax do the rich – and everyone else – pay today?
Recently, the Tax Foundation released its summary of the latest federal income tax data from the IRS, for the 2022 tax year. Based on its analysis, the foundation found that the top 1% of taxpayers – that is, those who earned north of $663,000. that year – had an average tax rate of 26.09% and paid an average of $561,523 in taxes.
Overall, taxes paid by the top 1% accounted for 40% of all taxes paid in 2022.
The average tax rate for the top 1% was significantly higher than that paid by people in other income brackets. Here are the figures for the top 50% and bottom 50% of all taxpayers, followed by all taxpayers.
Top 50%
How was this group defined?: Taxpayers with adjusted gross income (AGI) of more than $50,399 per tax return
Average amount they pay in taxes in 2022Price: $26,959
Their average tax rate in 2022: 15.87%
The total amount they pay in taxes (ie, collectively) in 2022, rounded to the nearest million: $2,073,129,000,000 (or about $2.1 trillion, with a “T”)
Their combined taxes for 2022 as a proportion of all taxes paid by taxpayers that year: 97%
50% off
How was this group defined?: Taxpayers with adjusted gross income (AGI) of less than $50,399 per tax return
Average amount they pay in taxes in 2022Price: $822
Their average tax rate in 2022: 3.74%
The total amount they pay in taxes (ie, collectively) in 2022, rounded to the nearest million: $63,203,000,000 (or about $63.2 billion, for “B”)
Their combined taxes for 2022 as a share of all taxes paid by taxpayers that year: 3%
All taxpayers
Estimated amount paid by this group in taxes in 2022Price: $13,890
Their average tax rate in 2022: 14.48%
The total amount they pay in taxes (ie, collectively) in 2022, rounded to the nearest million: $2,136,333,000,000 (or more than $2.1 trillion, with a “T”)
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