Your Income Taxes are Due. Here's Who Pays the Most
A large chunk of the income tax in the U.S. is paid by a small slice of the population.
Now that you’ve paid your income taxes or are about to, let’s look at the big picture: Which of these statements is true about 2022 individual income taxes?
(A) They’ll provide 35% of federal revenue for the year.
(B) Most of the 180 million taxpayers will be lower earners, as about 70% are expected to earn less than $100,000. In aggregate, they will earn nearly 30% of the income of individual U.S. taxpayers and owe about 1.5% of the income taxes.
(C) About one-quarter of filers will earn between $100,000 and $500,000, and they’re expected to have nearly half the aggregate income and owe nearly half of income taxes.
(D) The top earners will owe the most compared with their share of income. A small group — about 900,000 filers earning $1 million or more — will have 16% of income and owe nearly 40% of income taxes.
The answer: All the statements are true except (A). Individual income taxes are expected to provide 54% of federal revenue for 2022, which is more than any other levy and more than many people guess.