Top 20% of Earners Pay 84% of Income Tax

Top 20% of Earners Pay 84% of Income Tax

With the end of tax day fast approaching, many Americans may be wondering where they fit in the system. With the individual income tax providing roughly half of the federal revenue, it is unusual compared to other developed nations that only get one-third of their revenue from income taxes. In addition to income taxes, other developed nations impose consumption taxes to help raise more revenue. Pressure on the U.S. income tax has made lawmakers consider imposing a consumption tax. This article goes on to explain why Congress has chosen to funnel benefits for low-income earners through income tax as oppose to other channels.

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