Question
When deductions and tax credits are applied, many people with lower levels of income pay no federal tax and may even receive a tax return
When deductions and tax credits are applied, many people with lower levels of income pay no federal tax and may even receive a tax return for more than they paid.
The top 20% of all US households pay 94% of all federal income tax paid according to the Congressional Budget Office.
Most other taxes are flat (sales tax, excise tax, property tax, etc) meaning lower income wage earners pay more in dollars as a percent of their income.
Some individuals (usually higher earners) receive a portion of their income in dividends or capital gains which are taxed at a lower rate that earned income (wages).
Is this fair or is this wrong?Why do you believe so?
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