(The Economic Populist) – Yes, the rich pay more in taxes (because they earn so much more) — but they don’t usually pay more as a percentage of their incomes.
According to a new report from the Institute on Taxation and Economic Policy, in nearly every state, low- and middle-income families pay a bigger share of their income in state and local taxes than wealthy families. Patricia Cohen wrote in her very detailed and comprehensive article at the New York Times: “When it comes to the taxes closest to home, the less you earn, the harder you’re hit.”
According to the study, in 2015 the poorest fifth of Americans will pay on average 10.9 percent of their income in state and local taxes, the middle fifth will pay 9.4 percent and the top 1 percent will average 5.4 percent.
In Bill Gates’ great State of Washington, the tax system is the most regressive — where the bottom 20 percent of taxpayers pay 16.8 percent of their income in taxes, while the top 1 percent pay just 2.4 percent.