In today’s “oh really” department, the Internal Revenue Service tells us that the rich pay less taxes than they used to and about half of all American households pay no income taxes whatsoever.
The average federal income tax rate for all taxpayers fell from 9.9 percent to 9.3 percent from 1992 through 2007 while the tax rate paid by the 400 richest Americans dropped from 26 percent to 17 percent for the same period.
Few taxpayers ever reach the top rate of 35 percent because the tax laws provide so many breaks and loopholes. You get tax breaks for having children, a mortgage, paying other taxes and you pay only 15 percent on capital gains.
In fact, with so many tax breaks, the IRS says at least 45 percent of American households will pay no income taxes at all for 2010.
- Super rich see federal taxes drop dramatically (seattletimes.nwsource.com)
- Tax Day Reminder: Richest Americans Probably Pay at a Lower Rate than You Do (fdlaction.firedoglake.com)
- The Death of Taxes (garystlawrence.wordpress.com)
- Poll: Most think taxes are fair (capitolhillblue.com)
- Richest gain with historically low income tax rate (sfgate.com)