High Income Americans Pay Almost All Income Taxes

December 12, 2013 Taxation in USA

WASHINGTON D.C. – The total annual income tax take from the 40 percent of Americans with the lowest incomes are less than the financial benefits that they receive from the government.

According to a report released several days ago by the Congressional Budget Office (CBO), the bottom 40 percent of taxpayers in the USA pay less in income taxes then they receive back from government in the form of payouts and assistance, and the difference between taxes paid and benefits received is equivalent to approximately 9.1 percent of all the income taxes collected in the country.

In comparison the top 40 percent of earners paid 106.2 percent of all revenues from income taxes in the 2010 calendar year, while the middle 20 percent of taxpayers paid out approximately 2.9 percent of all of the income taxes collected by US tax authorities.

On average, households in the lowest 40 percent of earners received USD 18 950 of government assistance in 2010, while households in the middle 20 percent received USD 10 800, and those in the first and second 20 percent group enjoyed payouts of USD 7 400 and USD 6 500 respectively.

Photo by: Emilian Robert Vicol