Dec 12, 2024
This is true. However, factoring in payroll taxes ($1.2 trillion total vs. about $2.6 trillion total federal income taxes), top earners pay far less than that 45.8% number. In fact, most Americans pay more in payroll taxes than in income taxes (https://taxfoundation.org/data/all/federal/payroll-income-tax-burden/), whereas for the top 1% of income earners, the average payroll tax burden is just 1% vs. the nearly 26% average effective income tax rate.