Taxes On The Rich Near 30-Year High: Tax Policy Center
Quote :For 2013, families with incomes in the top 20 percent of the nation will pay an average of 27.2 percent of their income in federal taxes, according to projections by the Tax Policy Center, a research organization based in Washington. The top 1 percent of households, those with incomes averaging $1.4 million, will pay an average of 35.5 percent.
Those tax rates, which include income, payroll, corporate and estate taxes, are among the highest since 1979.
The average family in the bottom 20 percent of households won't pay any federal taxes. Instead, many families in this group will get payments from the federal government by claiming more in credits than they owe in taxes, including payroll taxes. That will give them a negative tax rate.
The middle 20 percent of U.S. households – those making an average of $46,600 – will pay an average of 13.8 percent of their income in federal taxes for this year, according to the Tax Policy Center. Over the past three decades, the average federal tax rate for this group has been about 16 percent.
The new tax law made the federal income tax more progressive, increasing the top tax rate from 35 percent to 39.6 percent, on taxable income above $400,000 for individuals and $450,000 for married couples filing jointly. Lower tax rates on income below those amounts were made permanent. Also, tax breaks for low-income families first enacted as part of Obama's 2009 stimulus package were extended through 2017.
I can actually attest that I have heard and watched people decide not to work (or work very little) because the benefits are so great for those with limited income. I've actually had rather intelligent people actually through the numbers arguing that "if I work here making $x and hour.. I make $x per year.. pay $x etc.. etc.. , but if stay below this annual income instead. I will get x, y, and z in state and federal assistance. Sure enough their math worked out.. it was in their financial best interest to be underemployed vs. full time employed. Of course it's not a bright idea over a long term basis, but some people are apparently fine with squeaking by.. (possibly forever).