Billionaires Paid Less In Taxes Than Working Class Americans Last Year

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Study finds that billionaires paid less in taxes than the working class in 2018 for the first time in U.S. history.

A recent study found that billionaires paid less in taxes than the working class last year for the first time in U.S. history, according to The Hill.

Economists Emmanuel Saex and Gabriel Zucman found that the average tax rate paid by the richest 400 families in the United States was lower than the rate paid by the bottom half of American households in 2018. The wealthiest 400 families had a 23 percent tax rate while the bottom half of households had a 24.2 percent tax rate.

By comparison, the wealthiest 400 families had a 47 percent tax rate in 1980 and a 56 percent tax rate in 1960, steadily dropping while the tax rate for the working class has remained relatively stable. The top 400 families have more money than the bottom 60 percent of households.

Some economists have criticized the study claiming that it overestimates wealth disparity in the country, and fails to include refundable tax credits, which makes tax burdens appear inflated.

The tax on the wealthiest members of society has declined over time, but the 2017 Tax Cuts and Jobs Act was a significant tax cut for this group.

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