Wealthy Americans Pay Less Tax Than Poor

February 1, 2013 Taxation in USA

Monopoly JusticeWASHINGTON D.C. – Some of the USA’s lowest earning taxpayers are facing a tax rate of nearly six times more than their wealthy counterparts.

In a new report released on January 30th the US Institute on Taxation and Economic Policy (ITEP) showed that low income taxpayers in the US pay a higher effective tax rate than high income earners.

According to the research, the effective tax rate faced by the top 20 percent of earners is approximately 5.6 percent, while the middle 60 percent of earners pay a rate of 9.4 percent, and 11.1 percent amongst the bottom 20 percent of earners.

ITEP found that amongst the ten richest states in the country, middle income earners pay an effective tax rate of nearly three times higher than wealthy taxpayers, and the lowest earning taxpayers face a tax rate of up to six times that of wealthy individuals.

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