Report: wealthiest Americans only paid a single-digit tax rate
According to a new White House report, the 400 wealthiest American families paid an average 8.2 percent tax rate on $1.8 trillion of income between 2010 and 2018.
“Two factors that contribute to this low estimated tax rate include low tax rates on the capital gains and dividends that are taxed, and wealthy families’ ability to permanently avoid paying tax on investment gains that are excluded from taxable income,” the analysis said.
The report, authored by economists from the White House Council of Economic Advisers and the Office of Management and Budget, is based on IRS statistics, the Federal Reserve’s Survey of Consumer Finances, and Forbes magazine estimates.
Finance Committee Chairman Ron Wyden (D-OR) said, “the White House’s new report is shocking but not surprising.”
The information comes as President Joe Biden aims to address the tax rate disparities through proposals to raise the top capital gains rate and end the “stepped-up basis” tax preference that benefits heirs.