Taxes Are Down For the Rich Yet Again

David Leonhardt presents us with a chart today based on data from a new book by Emmanuel Saez and Gabriel Zucman. It shows the effective total tax rate for all income levels in the United States. This includes all state, federal, and local taxes:

The effect of the latest Republican tax cut shows up in the 2018 line: the very richest Americans now pay a total effective tax rate of 23 percent. The poor and the middle classes, by contrast, pay about 25 percent. As you can see, the tax rate for the rich has been dropping steadily for half a century.

The federal income tax code, of course, remains progressive. But it’s no longer progressive enough to make up for payroll taxes and local sales taxes, which have always been regressive. As a result, conservatives have finally reached their dream of a flat tax by stealth. It makes you feel all warm and fuzzy inside, doesn’t it?

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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