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In the U.S., do households in the top 1% of income pay a higher or lower average effective federal tax rate than middle-income households?

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The Congressional Budget Office, the Obama administration Treasury Department, and the Tax Policy Center have all documented that households in the top 1% of income pay an average effective federal tax rate of about 33%, while middle income households pay about 12%. These tax rates account for nearly all income and federal taxes. Claims that the top 1% pay a lower rate are based on calculations that exclude large portions of people's taxes and/or incomes.

DocumentationTaxes on the Top 1%Tax Distribution



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