Do the top 1% in income in America pay enough income tax?Here are the facts to decide.
In 2018, the latest data from the Internal Revenue Service show 153.6 million individual income tax returns were filed. Of those returns, 1.6 million reported adjusted gross income of $500,000 or more. Thus, almost exactly 1% of individual returns filed in 2018 reported income of $500,000 or more. Using income as a gauge of wealth, rather than net worth, these are the “one-percenters.”
The one-percenters – taxpayers earning $500,000 or more in adjusted gross income -- accounted for 21.7% of total adjusted gross income reported on all 153.6 million individual tax returns filed.
They accounted for 41.5% of total income taxes paid and they paid 25.3% of their adjusted gross income in taxes 2018, less than they paid before the tax cut of 2017. Was that enough? It’s for you to decide, but those are facts.
No matter your answer, you can count on us for the facts and advice on the tax hikes on income and wealth almost certain to be enacted in 2021.