http://www.economist.com/blogs/democracyinamerica/2012/07/taxes-and-rich-0 The fact of the matter is that the American tax code as a whole is almost perfectly flat. The bottom 20% of earners make 3% of the income and pay 2% of the taxes; the middle 20% make 11% and pay 10%; and the top 1% make 21% and pay 22%. Steve Forbes couldnât have drawn it up any better. Looks like the USA has a flat tax! So unexpected :eek: :eek: :eek: I thought they were progressive tax.
mmm...last time i've checked-it's close to a 50% for middle class,if you sum all the taxes. fed,state,real estate,school,occupational, and so on..
The flat tax refers to income tax. The only way youc an get those stats is to add in a bunch of stuff like FICA that is more of an insurance payment. The original premise is true however. There is a flat tax for most taxpayers, ie the upper 40% who pay all the taxes. It is called the Alternative Minimum Tax. It was designed to prevent rich people form excapong all tax liability by use of tax shelters, but now it mainly targets upper middle income taxpayers who live in high tax states.