Report: A Quarter of U.S. Millionaires Pay Taxes at a Lower Rate Than Some in Middle Class

Wanted to be sure you saw this Washington Post article on a CRS report that found a quarter of millionaires in the U.S. pay taxes at a lower rate than middle class families.

Key excerpts:

“A quarter of millionaires in the United States pay a smaller share of their income in federal taxes than many middle-class families, according to a new congressional analysis that offers fresh support for President Obama’s push to raise taxes on the nation’s wealthiest households.”

“The report, by the nonpartisan Congressional Research Service, found that when all federal taxes are taken into account — including those on wages, investment income and corporate profits — some households earning more than $1 million a year paid as little as 24 percent of their income to the Internal Revenue Service in 2006.”

“That’s substantially less than the share paid by many families making less than $100,000 a year that faced a top effective tax rate exceeding 26.5 percent, the report said.”

“All told, 94,500 millionaires paid a smaller share of their income in taxes than 10 million households with moderate incomes, the report found.”

While Republicans want to protect millionaires from paying their fair share and have voted to balance the budget on the backs of the middle class and seniors, Democrats continue to pursue a balanced plan to reduce the deficit, create jobs, strengthen entitlements and ensure all Americans – even the wealthiest – pay their fair share.