tax rates

Making History: U.S. Billionaires Paid Lower Tax Rate Than Working Class

A study, appropriately named “The Triumph of Injustice,” by economists Emmanuel Saez and Gabriel Zucman of the University of California at Berkeley, has found that, for the first time in history, the wealthiest Americans paid a lower tax rate than the bottom 50% of Americans.

In 2018, the average effective tax rate paid by the richest 400 families in the U.S. was 23% — a full percentage point lower than the 24.2% rate paid by the bottom 50% of American households, according to the Washington Post.

It is a huge change from 1980, when the 400 richest families had an effective tax rate of 47%, or in 1960, when that rate was as high as 56%. But the effective tax rate paid by the bottom 50% of Americans, the working class, has changed very little over time.

Related Article: AOC on Trump’s ‘Young Bartender’ Dig: ‘There is Nothing Wrong with Being a Working Person’

Saez and Zucman wrote that the focus on the ultrarich is necessary because they control most of the nation’s wealth. The richest 400 families in the country have more wealth than the bottom 60% of American households.

It has been a steady move toward this point, where U.S. billionaires are paying very little taxes. Saez and Zucman wrote that it’s been a combination of deliberate decisions and not taking actions at crucial points.

Congress has slashed top income tax rates and cut taxes on capital gains and estates. There is inadequate funding for IRS enforcement as well, and major multinational corporations have been able to hide their profits in off-shore accounts, the Post reported.

But the major push toward letting America’s richest families pay little taxes was President Donald Trump in 2017 with the passage of the Tax Cuts and Jobs Act, which the president said would help the working class by the “trickle-down” effect.

It lowered the top income tax bracket and slashed the corporate tax rate, while higher rates of growth and business investment have not happened for ordinary Americans.

Latest News

Southern Company Renders Aid in Isaias’ Wake

Originally published on southerncompany.com. Nearly a thousand Southern Company system resources responded to help restore power in the Northeast after Tropical Storm Isaias battered the region, leaving more than 3.5 million customers without power from South Carolina to New England. As members of the Southeastern Electric Exchange, Southern Company has…

Cigna

Cigna Names Noelle Eder, Global Chief Information Officer

Originally published on cigna.com.  BLOOMFIELD, Conn., Aug. 12, 2020 — Cigna has named Noelle Eder, Global Chief Information Officer, effective September 14. She will report to David M. Cordani, President and Chief Executive Officer and will serve as a member of the Enterprise Leadership Team. Eder will lead Cigna’s global technology strategy, and oversee…

Marriott International

Marriott International Introduces New Content On Digital Platform For Meetings & Events

Following the announcement of Marriott International’s Commitment to Clean and Global Cleanliness Council, Marriott has introduced digital content about redefined processes and reimagined spaces guided by cleanliness experts and best practices to help hosts, organizers and attendees plan and execute meetings and connect with confidence. Recognized as an industry leader…