Tax disparity debate

Author

Profit Monk
April 24, 2025

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We become like those around us. Work with difficult people, and you'll likely adopt their traits. Spend time with selfish colleagues, and selfishness may become your habit too. Associate with unkind people, and that harshness will gradually shape your own behavior.

Few choices matter more than who you allow in your life. We often believe we're immune to negative influences, but these changes happen so slowly we rarely notice until they've already taken root.

90% income tax paid by the top 10% earners

Overall, the federal government collected 153.8 million tax receipts in 2022, generating $2.1 trillion in income tax revenue. The highest 1% of earners paid a total of $863.3 billion in taxes, averaging $561,523 each.

At the very top, the highest-earning 1%—about 1.5 million taxpayers making at least $663,164 in 2022— saw an average income tax rate of 26.1%

Just below them, earners in the top 1-5% bracket paid 18.8% on average in income tax. Together, the top 5% of U.S. earners paid $1.3 trillion in income taxes, making up 61% of the federal total.

Income disparity - and taxes paid

Meanwhile, those earning between $99,857 and $178,611—placing them in the top 10-25% of earners—paid an average rate of 10.7%. In total, the top 25% of earners were responsible for 87.2% of income taxes collected.

On the other end of the spectrum, the bottom 50% of U.S. earners paid an average of $822 in income tax, with a much lower average rate of 3.7%. Importantly, this does not include payroll taxes, which account for a bigger share of paid income taxes compared to others. Overall, these contributions made up 3% of total federal income tax revenue in 2022.

Why it matters

Rich folks pay more as they earn more. The top 10% make the most money

-AND -

they pay 90% of taxes.

Is this fair to everyone? For you to judge.

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