Who Pays The Most In Taxes?

The fact that people make different salaries is not new information. In most instances it is easy to see the disparity income level, by looking at material things such as houses and cars. In other instances, it is unwise to judge a book by its cover, and the co-worker who drives a 10 year old car might make twice your income. The same cannot be said about who pays the most in taxes. It seems clear to the average taxpayer that those who make more, pay more and those that make less also pay more. The inequality in tax rates has long been debated and is a constant source of political discussion.

Wage earners are classified into three categories; high, middle, and low. Those in the middle and lower categories constantly push for a fair tax, whereby those that are able to pay more are made to do so. The desire to level the playing field stems from the need to even out who pays what, and make the system work for the working class. A recent Marketwatch study breaks down tax liability by these three categories and the findings include the following:

• Those earning $250,000 or more account for only 2.4% of all returns filed. In contrast, the income these workers earn is 26% of all income reported.
• The middle, which includes those that make between $50,000 and $100,000, the percentage of filers is 22%, representing 25% of all income reported.
• At the bottom of the spectrum are those that make $15,000 or less. The staggering statistic regarding this class is that while this income level is a paltry 1% of all income reported, 25% of all filings fall in this category.

Given the high percentage of those in the lowest wage earning bracket, it isn’t hard to understand the frustration with the current tax scheme. If you fall in this category, owing taxes at the end of the year can be a real strain on your finances. To help minimize the impact additional tax liability has on your stress level and financial bottom line, you need to maximize your credits and take every deduction available to you. Doing so, though requires careful analysis of the specifics of your tax situation. Our team of skilled legal, tax professionals can help you determine what credits and deductions you qualify for, and how to take advantage of beneficial tax breaks.

If you have questions about what you are entitled to deduct, or what credits you are eligible to take when preparing taxes, let the professionals at Nielsen Law Group help you today. Call (480) 888-7111 or submit a web request here. We work with you for satisfactory and timely results.