Home|Who We Are|Our Services|Resources|News Center|Contact Us|Client Access
More Articles  Printer Friendly Version


Do The Top 1% In Income Pay Enough Income Tax?

Do the top 1% in income in America pay enough income tax? Here are the facts to decide.

4909 2

In 2018, the latest data from the Internal Revenue Service show 153.6 million individual income tax returns were filed. Of those returns, 1.6 million reported adjusted gross income of $500,000 or more. Thus, almost exactly 1% of individual returns filed in 2018 reported income of $500,000 or more. Using income as a gauge of wealth, rather than net worth, these are the “one-percenters.”

The one-percenters – taxpayers earning $500,000 or more in adjusted gross income -- accounted for 21.7% of total adjusted gross income reported on all 153.6 million individual tax returns filed.

4909 1

They accounted for 41.5% of total income taxes paid and they paid 25.3% of their adjusted gross income in taxes 2018, less than they paid before the tax cut of 2017. Was that enough? It’s for you to decide, but those are facts.

No matter your answer, you can count on us for the facts and advice on the tax hikes on income and wealth almost certain to be enacted in 2021.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances. The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.

Email this article to a friend

Five Years Ago In Financial Economic History
Here's What's Happening Now In Wealth Management
Making A Financial Transition? Answer These Five Questions
Going Out On Your Own Terms: Six Key Documents In An Estate Plan
Your Financial Psychology Under Current Conditions
What's The Risk Of A Market Melt-Up?
U.S. Stocks Returned 10 Times More Than Bonds In Past Five Years
Stock Market Trend Report
Two Observations That May Make Higher Taxes Easier To Bear
John Oliver's Economic Analysis Is No Joke
Are You A Risk To Your Financial Health?
News Analysis: Today’s Testimony By The Fed Chair And Treasury Secretary
Pandemic Financial Pain Is A Thing
Capitalizing On Current Financial Economic Trends
The Cost Of Not Having A Financial Plan Is Surging

This article was written by a professional financial journalist for Responsive Financial Group, Inc and is not intended as legal or investment advice.

©2021 Advisor Products Inc. All Rights Reserved.
© 2021 Responsive Financial Group, Inc | 204 W Wing St, Arlington Heights, IL 60005 | All rights reserved
P: 847-670-8000 | F: 847-590-9806 ben@rfgweb.com |
Disclosure | Contact Us
Responsive Financial Group, Inc. is a fee-only registered investment advisory firm in the State of Illinois. Information on this site is compiled from multiple locations and is believed to be accurate. Incorrect information may come from these outside sources. Should you notice anything please notify us immediately. Thank you!