During his State of the Union speech, President Biden said that American billionaires pay an average federal tax rate of only 8.2%. I quote:
There are 1,000 billionaires in America. You know what the average federal tax rate for these billionaires is? 8.2 percent! That’s far less than the vast majority of Americans pay. No billionaire should pay a lower tax rate than a teacher, a sanitation worker, a nurse!
How can this be? Even if those billionaires earn no money from capital gains and just live off the interest on their money, either from regular savings accounts or from the various types of CDs, those earnings are taxed at the same rate as salaried income.
Any income earned from capital gains that exceeds $41K for individuals and $95K for households is taxed at a rate of 15%. If it exceeds $519K for individuals and $584K for households, it is taxed at a rate of 20%.
The majority of working Americans pay a federal income tax rate of no more than 12%, since they fall into the first and second tax brackets. Approximately 60 million Americans pay an average tax rate of only 1.5%, even before tax credits are applied (LINK).
Anyone have any idea where Biden got this claim that the average federal tax rate for billionaires is only 8.2%?
There are 1,000 billionaires in America. You know what the average federal tax rate for these billionaires is? 8.2 percent! That’s far less than the vast majority of Americans pay. No billionaire should pay a lower tax rate than a teacher, a sanitation worker, a nurse!
How can this be? Even if those billionaires earn no money from capital gains and just live off the interest on their money, either from regular savings accounts or from the various types of CDs, those earnings are taxed at the same rate as salaried income.
Any income earned from capital gains that exceeds $41K for individuals and $95K for households is taxed at a rate of 15%. If it exceeds $519K for individuals and $584K for households, it is taxed at a rate of 20%.
The majority of working Americans pay a federal income tax rate of no more than 12%, since they fall into the first and second tax brackets. Approximately 60 million Americans pay an average tax rate of only 1.5%, even before tax credits are applied (LINK).
Anyone have any idea where Biden got this claim that the average federal tax rate for billionaires is only 8.2%?