Okay, you pay 24% of $100,000. That is $24,000. But that is not what you actually pay. You pay 10% for the first $11,000. These are called marginal rates. That is $1100. Then you pay 12% on income up to $44,725. That is $4047. Then you pay 22% up to $95,375. That is $11,143. You pay 24% on the $4,625. That is $1,110. So, on an income of $100,000, you pay $1,100 + $4,047 + $11,143 + $4,625$ = $17,400, or AN ACTUAL TAX OF 17.4%. This, of course, doesn't include your deductions or tax credits which reduce your marginal rate.
You earn $100,000,000 and you pay 8.2%. That is $8,200,000 which is significantly more than $17,400.
The top 1 percent of taxpayers paid roughly $615 billion, or 40.1 percent of all income taxes, while the bottom 90 percent paid about $440 billion, or 28.6 percent of all income taxes. More than 100 million U.S. households, or 61% of all taxpayers, paid no federal income taxes last year. Yes, the progressive income tax is regressive, as is sales tax, because a larger percentage of a middle-income person's income is spent also on sales tax and other taxes. Then there is state income tax, property tax, and all the other taxes assessed on almost every aspect of your life (i.e. utilities taxes, gasoline taxes, etc.) Without the rich, it would be virtually impossible to make investments in our economy. Granted, we need a strong middle class, but wealth is not static, and people are constantly moving from one economic group to another throughout their life cycle. If you think big corporations don't pay taxes, consider that they create jobs, this helps small business owners prosper because the employees take home a paycheck, and spend money at small businesses. They also pay taxes from their paycheck (this is an indirect tax on the big business and small business). They need profits to reinvest in the business to stay competitive. The problem is not the amount of taxes paid. The problem is a growing government bureaucracy that spends more as it gets bigger, and the bigger it gets the more inefficient it becomes. Bidenomics is a perfect example. People are earning less during the Biden administration because of inflation, which also reduces the spending power of people on fixed incomes, such as social security or disability payments. These people are losing ground. Minorities are losing ground. They were all doing much better under the Trump administration. Do you still think the rich don't pay their fair share? It's a matter of perspective.
The Median Income: 50% earn above and 50% earn below.
As of January 2023, the median household income in the United States is 208.8031. According to the U.S. Bureau of Labor Statistics, the annual mean wage for a full-time wage or salary worker in the United States is $53,490 per year or $1,028 per week (for a 40-hour work week).
The Mean Income: (The arithmetic average of all incomes earned divided by the number of persons)
The average household income in 2023 was $106,270.901. In 2022, the average household income was $102,310.10 (not adjusted for inflation)1. According to the Pew Research Center's guidelines, middle-income Americans would have annual incomes between $38,133 and $114,400 in 2023, before adjusting for local cost of living and household size.
For 2022, the average wage for working Americans was $61,136.
The average wages of those in the top 1 percent of wage earners were $785,968 that year. That is 1 in 100. This means that 1 person in every 100 people earns more than $785,968 and pays 40.1% of the income tax, while 90 people out of 100 pay 28.6% of all income taxes. That leaves the other 9 out of 100 people paying 32.3% of income taxes. They earn at least $167,639.
In the rarefied top 0.1 percent, the average earnings were more than $2.8 million in 2022. That is 1 in 1000. They pay 24% of all federal income taxes.
Do you still think the rich don't pay their fair share? It's a matter of perspective.
Thus ends your economic lesson for today.
Okay, you pay 24% of $100,000. That is $24,000. ... (
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