According to a report by the think tank, The Tax Foundation, the richest 10 percent of people in the U.S. pay more than 70 percent of the tax collected overall in America.
People usually believe that the rich and wealthy generally wriggle their way out from paying taxes. However, a recent report released by The Tax Foundation suggests otherwise. According to the report, the richest 10 percent of the U.S. population paid 70 percent of the total tax collected in the country overall in 2010, which are the latest figures available. This is 15 percent higher than the 55 percent that was recorded in 1986.
The remaining 90 percent of the population bore only 30 percent of the total taxes paid in the country. In fact, the report suggests that about 47 percent of Americans pay hardly any tax. This got Republican presidential candidate Mitt Romney into a lot of political trouble last year.
"There's been a huge myth created that the rich aren't paying anything," said William McBride, the Tax Foundation's chief economist. "The rich pay a much higher rate than the poor."
According to a report by CNN, these numbers portray the least of the tax scenario of the county. The tax slabs have gotten more progressive over the years. In 1986, there were only two tax brackets - 15% and 28%. Now, there are seven tax brackets in the US - the lowest being 10% and the highest going up to 40%.
Since 1896, tax on investment has decreased a bit. However, incentives like child care and income tax credits for the poor have been greatly expanded. Roberton Williams, a senior economist at the centrist Tax Policy Center, says that the rich have also found a way around to take advantage of the tax brackets. Owing to this, the notion of the wealthy cheating the tax man has become popular. A Tax Policy Center report that was released last year stated that over 4,000 households have incomes over $1 million but were not paying any tax at all.
"The system is a little progressive, but not much," Bob McIntyre, director of Citizens for Tax Justice, a liberal group said.
According to McIntyre, the wealthy are paying more taxes because of how much money they make. The highest taxpayers reportedly take home 45% of the nation's income, according to Citizens for Tax Justice.
