Taxes Are Down For the Rich Yet Again

David Leonhardt presents us with a chart today based on data from a new book by Emmanuel Saez and Gabriel Zucman. It shows the effective total tax rate for all income levels in the United States. This includes all state, federal, and local taxes:

The effect of the latest Republican tax cut shows up in the 2018 line: the very richest Americans now pay a total effective tax rate of 23 percent. The poor and the middle classes, by contrast, pay about 25 percent. As you can see, the tax rate for the rich has been dropping steadily for half a century.

The federal income tax code, of course, remains progressive. But it’s no longer progressive enough to make up for payroll taxes and local sales taxes, which have always been regressive. As a result, conservatives have finally reached their dream of a flat tax by stealth. It makes you feel all warm and fuzzy inside, doesn’t it?

ONE MORE QUICK THING:

Or at least we hope. It’s fall fundraising time, and we’re trying to raise $250,000 to help fund Mother Jones’ journalism during a shorter than normal three-week push.

If you’re reading this, a fundraising pitch at the bottom of an article, you must find our team’s reporting valuable and we hope you’ll consider supporting it with a donation of any amount right now if you can.

It’s really that simple. But if you’d like to read a bit more, our membership lead, Brian Hiatt, has a post for you highlighting some of our newsroom's impressive, impactful work of late—including two big investigations in just one day and covering voting rights the way it needs to be done—that we hope you'll agree is worth supporting.

payment methods

ONE MORE QUICK THING:

Or at least we hope. It’s fall fundraising time, and we’re trying to raise $250,000 to help fund Mother Jones’ journalism during a shorter than normal three-week push.

If you’re reading this, a fundraising pitch at the bottom of an article, you must find our team’s reporting valuable and we hope you’ll consider supporting it with a donation of any amount right now if you can.

It’s really that simple. But if you’d like to read a bit more, our membership lead, Brian Hiatt, has a post for you highlighting some of our newsroom's impressive, impactful work of late—including two big investigations in just one day and covering voting rights the way it needs to be done—that we hope you’ll agree is worth supporting.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate