best answer > What percent of taxes are paid by the 1%?- QuesHub | Better Than Quora
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  • Savannah White——Studied at University of California, Berkeley, Lives in Berkeley, CA

    As an expert in economic and fiscal policy, I can provide an analysis on the distribution of tax payments among different income groups in the United States. It's important to note that tax rates and the percentage of income paid in taxes can vary significantly depending on the year, the specific tax policies in place, and the source of the data. With that said, let's delve into the topic.
    Step 1: English Response
    The distribution of the tax burden among income groups is a complex and dynamic issue. According to a study cited, the top-earning 1 percent of Americans were projected to pay nearly half of the federal income taxes in 2014. This represents the largest share within at least a three-year period leading up to that year. This significant contribution is often a point of discussion when considering the fairness and progressivity of the tax system.
    Conversely, the study also indicates that the bottom 80 percent of Americans were expected to contribute only 15 percent of all federal income taxes in 2014. This disparity can be attributed to several factors, including but not limited to, the progressive nature of the tax code, various deductions and credits available to lower-income households, and the concentration of wealth among the top percentiles.
    It's also worth noting that the tax system in the U.S. is designed to be progressive, meaning that as income rises, the percentage of income paid in taxes also increases. However, the actual percentage paid by the top 1 percent can fluctuate based on changes in tax legislation, economic conditions, and the behavior of high-income earners in response to these factors.
    When examining the tax burden, it's crucial to consider not just federal income taxes but also other forms of taxation such as payroll taxes, sales taxes, and property taxes, which can have a different impact on various income groups. For instance, payroll taxes, which fund Social Security and Medicare, are regressive, meaning they take a larger percentage of income from lower earners than from higher earners.
    Additionally, the effective tax rate (the percentage of income actually paid in taxes after deductions, exemptions, and credits) for the wealthiest can sometimes be lower than that of the middle class due to tax planning strategies and the capital gains tax rate, which is typically lower than the rate on ordinary income.
    In conclusion, while the top 1 percent of earners do pay a substantial portion of federal income taxes, the overall tax burden when considering all types of taxes may tell a different story. It's a multifaceted issue that requires a nuanced understanding of tax policy, economic behavior, and the distribution of wealth and income in society.
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  • Benjamin Lee——Works at the World Health Organization, Lives in Geneva, Switzerland.

    The top-earning 1 percent of Americans will pay nearly half of the federal income taxes for 2014, the largest share in at least three years, according to a study. The bottom 80 percent of Americans are expected to pay 15 percent of all federal income taxes in 2014, according to the study.Apr 14, 2015read more >>

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