Why are rich people in the U. S. paying so low taxes for marginal rates?

Question

The top 10% of earners in the U. S. control 90% of the annual income and 99% of the accumulated wealthy, yet they pay less than 70% of the income taxes. This is pathetic. It's robbing normal people to make the rich richer.

Anonymous · Accepted Answer

Well, think about their perspective. How would you feel paying over 30% in federal income tax and funding wasteful programs with your hard-earned money? When you was young, you worked long hours to build your business (or career), made sacrifices, and worked 80, 100 hour weeks. You sacrificed so much while the average person was partying and having fun. You took risks and put in hard effort. 20-30 years later, you made it. There are many people like you that became wealthy by their own hard work. How would you feel if you are forced to give a third of your hard earned money to support corrupt politicians and lazy bums that live on welfare?
Now everyone feels the top 10% pays little to no taxes and they use everything to lower the amount of taxes they pay. But it absolutely makes sense for them to try to lower the amount of taxes they pay. People who try to save lower the amount of expenses they have, and tax is another form of expense. Anyone in their shoes will do the same.

To lower taxes, they hire a tax lawyer of some sorts, donate to charity, add business expenses, investments, itemize deductions and etc. But they still pay more taxes than the average.
And it should be known that the top 10% are not rich, millionaires or 7 figures are not rich, they are well-off.
Most of the people that say the rich are unfair when actually they are the ones that are unfair. They do not care about equalness, rather they are jealous that others are doing better than them and think "I am unhappy and broke. I cannot stand anyone being successful so let's drag them to my level. Then we feel equally miserable."

Anonymous · Accepted Answer

I honestly don’t think the wealthy should pay more in taxes just because they make more. I get that some of them may have I jetties their money, but there are a lot of others who worked their tails off to get where they are now. There’s nothing that says you can’t do the same. The sad thing is a lot of us at the “lower” level don’t know how to make money work for us. It doesn’t matter if you were making millions a year most of us would be just as broke because most of us tend to spend money when we get it on things we don’t need. Honestly if you were a millionaire would you be willing to pay have yourself annual income in taxes? I don’t agree w it. Just like I don’t agree w people who are single w no children having to pay more in taxes as opposed to someone who is married w a potential second income combined w their spouse. I get they have kids, so a little more expenses to pay for but again two incontestable more than likely. Many of us go to school, meet someone, have kids then try to go to school and get married. Much easier if you did the opposite. Went to school, dates, marriage then kids after establishing yourselves. There’s a lot of ways to itemize your deductions, to lower your tax bracket. You just have to learn how.

Razp_Sorbet · Accepted Answer

2010 to 2018 the top 40 richest Americans only paid an average of 8.2% in federal taxes 🙃🙃 lower than the majority. 2014-2018 the tops 24 only paid 3.4% while their net worth grew 401billion.

Tax-The-Rich.

KrisPW · Accepted Answer

Where are your numbers from?  I think your 70% number is backward. Everything I'm finding says the top 10% are paying 71% of all Federal Taxes and the bottom 50% pay less than 4% of the total.

Phoenix-gb · Answer

Because rich people got rich by gaming the system. The only difference that would happen if they paid their required share (without using all the loopholes available) is they would be slightly less rich (still more than they require to live a comfortable life) but everyone else would have healthcare, public transport, maintained infrastructure, fully funded police and fire services and a decent public education system.

The other option, if they don't want to pay taxes that help everyone, would be to get paid less and pay their staff more, so their staff can afford to privately take care of the above.

I think we all know the chances of either of those scenarios happening voluntarily.

Diodoro · Answer

Tax shelters.

At a certain level the money they generate isn't salary. It's under different classification. Like if a CEO who starts his company all the revenue generated goes to paying employees, paying for the business expenses and then he decides what portion leftover is his personal income and will pay standard income tax on that.

The rest usually goes towards reserves, investing back into the business for marketing, R&D depending on the industry and so on. All tax write offs.

Even if you take your income make from a standard W2 job if you buy real estate you can write that off on your taxes. There's a lot of tax laws in the favor of those who spend money on things considered good for the economy

Lliam · Answer

Congress does the bidding of those with the most money.

There was a 90+% "marginal" income tax rate from 1944-1963.
Look up how marginal income tax works.
It encouraged high income earners to get tax write offs by reinvesting their income instead of hording it.

America experienced it's most prosperous period. It didn't stop people from pursuing wealth. It didn't prevent people from becoming wealthy. It actually led to more jobs, greater innovation, competition and prosperity.

The1honestguy · Answer

And if you look back and do some research I can get you the link if you need it but ever since right after Bruce would do 911 and all that crow right after it comes Clinton coming in and son in China into the world trade organization so they could do all the business they want and ever since that day everything has gone downhill for us the lower middle class and even some of the upper class are all tank but the elite at 10% down all seashore social media everything else that you can imagine on the Internet are those people that are controlling everything sold so much of our information and technology straight to china for the way so many trillions to have us told tax them and middle class and below is the only one fucked to the ass of taxes

bamesjond0069 · Answer

Because an income tax will never make sense. It should be a sales tax. People buying fancy cars and luxury items along with just lots of other stuff should be paying out the ass for consumption. Those that SAVE so they dont need help on the low end will be rewarded with no tax on their savings. Those who are rich will then USE their savings to invest in things (this will make the most jobs) whereas right now wealthy are forced to blow savings sometimes on nonsense to save on taxes. Ie would you rather pay 1 million in taxes or pay 2 million to buy a yacht for "business purposes" (just a dumb basic example)

Hispanic-Cool-Guy · Answer

It all started during the Reagan era where the goal was set motion to cut the super rich tax rate mucher lower which they claim will "trickle down" to the working Joe and Jane but in reality it just created a unprecedented wealth gap in the country.

Secondly, mega rich corporations own American politics and politicians as they are the ones who mainly fund their political campaigns so in return the politicians bend the knee to their will and leave taxes low as possible for them.

befuddle · Answer

No one is forcing you to give them your money. If you don't like the fact that they are earning large portions of money, then stop giving them your money... Spend your money in your local economy and invest in local manufacturing.

Anonymous · Answer

“Less than 70 percent”
You mean a small minority of people paying the *majority* of taxes isn’t good enough? When you’re taxes at 50% is that greedy to want to keep a mere half of what you earn? So we should raise taxes on them? And then what? If keeping half of what you earn is greedy then what does that mean for the government when they bump it up to 60% or more? Isn’t it the government being greedy then?

DCooper · Answer

Everyone should pay the same tax rate. Then the lazy people wouldn't have so much free time to bitch about the 30% of the bill the top 10% aren't paying for them, lol.

Daniela1982 · Answer

You are surprised by this?

Kiran_Yagami · Answer

They don't. Your data is faulty. The top 10% earners pay 71% of all taxes. They are pay vastly more than the rest of us combined. You being poor is your own fault, and taxing the rich more isn't going to make you wealthy.

notwoke · Answer

the rich pay almost all of the taxes in the USA. Over 40% of people don't pay anything. Why should one person be punished for working harder? How about we go after the able bodied people who aren't pulling their weight?

SinceYouAsked · Answer

Because big business and the wealthy got the politicians they paid for.

demonics · Answer

I always thought it was weird that the same mouth that says "the wealthy have all of the power in this country" will also say "we need to tax the wealthy more," often within the same breath...

VanillaSalt · Answer

Counter point… Elon musk paid more in taxes then you… how’s that fair?

driven159 · Answer

to fix that is to have a fair tax law just take 10 percent of every dollar earned in fact could be even less if everyone paid taxes but that would be fair so it won't happen

Nightmareofthenight_ · Answer

The rich people in the U. S. are paying low taxes for marginal rates because they have a lot of money. The government wants to encourage people to work hard and become rich, so they are offering them a lower tax rate.

fireforeffect · Answer

Your figures are wrong. The top ten percent pay 71% of all taxes, not just theirs, but all taxes total. You must be a Marxist trying to foment hate as you are.

Anonymous · Answer

Because the progressive tax system isn't designed to screw the rich as advertised. It is designed to screw people from becoming richer. The only fair tax is a flat tax.

OddBeMe · Answer

Yeah the 1950s are a good example in arguments for 90% tax rate.

Anonymous · Answer

Didn’t Elon Musk just say he payed more taxes than anyone ever this past year? I think we should let rich people have money instead of discouraging them from doing well.

Anonymous · Answer

Tax the religions that would fill in the missing trillions

Anonymous · Answer

Because you can get more taxes by taxing the 99% at 1% then the 1% at 99%.

exitseven · Answer

I think you should check your numbers.

Uptowngirl88 · Answer

Because they itemize their deductions.

michael1469 · Answer

Cause the system is rigged...

DangItBobby · Answer

Tax them into oblivion

EnglishEuropean · Answer

Because greed is good.

Gwenhwyfar · Answer

Good tax laws

ragooo8 · Answer

They buy politicians

anylolone · Answer

No. Not at all.

Why are rich people in the U. S. paying so low taxes for marginal rates?

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