The Rich Do Pay Lower Taxes Than You (2019)
8 hours ago
- #Wealth Distribution
- #Tax Inequality
- #Economic Policy
- Warren Buffett's claim about paying lower taxes than his secretary has become the norm, with the 400 wealthiest Americans now paying a lower total tax rate than any other income group.
- The overall tax rate on the richest 400 households dropped to 23% in recent years, down from 70% in 1950 and 47% in 1980, due to tax cuts and increased avoidance.
- Middle-class and poor families have seen relatively flat tax rates, with declines in federal income taxes offset by higher payroll taxes, making the tax system less progressive over 75 years.
- Emmanuel Saez and Gabriel Zucman's research shows that societies can choose progressive taxation, as historical examples like early American colonies and mid-20th century tax codes demonstrate.
- Low taxes on the wealthy have not boosted overall economic growth but have increased inequality; raising high-end taxes could fund policies like universal pre-K and infrastructure to benefit the majority.
- Proposed solutions include a global corporate tax minimum, a wealth tax, and strengthening tax enforcement to reduce avoidance, with evidence showing that serious collection efforts can succeed.