As an expert in economic policy and taxation, I can provide an analysis of the tax contributions made by the top income earners in the United States. It's important to note that tax rates and contributions can vary significantly depending on various factors such as income levels, deductions, credits, and changes in tax legislation.
The United States has a progressive tax system, which means that as income increases, the percentage of income paid in taxes also increases. However, the actual amount of taxes paid by the top earners is a complex issue that involves not only their income but also how they structure their finances and what tax strategies they employ.
According to the data provided, the top 1% of Americans, who have an average income of more than $2.1 million, pay a significant portion of the federal individual income tax in the U.S. Specifically, they contribute 43.6% of all federal individual income taxes. This is a substantial share, reflecting the progressive nature of the tax system where higher earners bear a larger tax burden.
When we delve into an even smaller subset, the top 0.1% of earners, we find that these individuals, numbering just 115,000 households with an average income exceeding $9.4 million, pay over 20% of the federal individual income tax. This group represents a very small fraction of the population but contributes a disproportionately large amount to the tax revenue.
It's also worth noting that the tax system allows for various deductions and credits that can reduce the effective tax rate for high earners. For example, they may have significant business expenses, charitable contributions, or other deductions that can lower their taxable income. Additionally, some income, such as capital gains, may be taxed at a lower rate than ordinary income, which can also affect the overall tax burden.
Furthermore, tax policy is subject to change, and the contributions of the top earners can shift with legislative changes. For instance, tax reforms can alter the rates, deductions, and credits available, which in turn can affect the amount of taxes paid by the top 20 or any other income group.
In conclusion, while the top 20 earners in the United States are not specifically identified in the data provided, it is clear that the top 1% and top 0.1% pay a significant portion of the federal individual income tax. The actual amount paid by the top 20 would depend on their individual incomes and how they manage their tax liabilities. Understanding the intricacies of the tax system and the strategies employed by high earners is crucial to accurately assess their tax contributions.

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The top 1% of Americans, who have an average income of more than $2.1 million, pay 43.6% of all the federal individual income tax in the U.S.; the top 0.1% -- just 115,000 households, whose average income is more than $9.4 million -- pay more than 20% of it.Apr 18, 2016read more >>