
New data released by the IRS reveals that, over a period of 12 years, tax rates for the richest 400 Americans were effectively cut in half. In 1995, the richest 400 Americans paid, on average, 29.93% of their income in federal taxes. In 2007, the last year for which the IRS has released data, the richest 400 Americans paid just 16.63%.

In 1995, just 12 of the 400 richest Americans paid an effective tax rat of between zero and 15%. By 2007, that number skyrocketed to over 150. The massive reduction is due to both Bush-era tax reductions for the wealthy and the aggressive exploitation of tax dodges and shelters. (For details, check out this report from BusinessWeek.)
As their tax rates plummeted, the total income of the richest 400 Americans skyrocketed. In 1995, the combined income of the richest 400 was just over $6 billion. By 2007, the combined income of the richest 400 was almost $23 billion.

If the richest 400 Americans simply paid the same effective rate in 1995 as they did in 2007, the government would have collected over $3 billion in additional revenue. Some millionaires agree that the reduction has been unfair and have formed a group, Patriotic Millionaires for Fiscal Strength, to demand higher taxes.
Help Truthout resist the new McCarthyism
The Trump administration is cracking down on political dissent. Under pressure from an array of McCarthy-style tactics, academics, activists and nonprofits face significant threats for speaking out or organizing in resistance.
Truthout is appealing for your support to weather this storm of censorship. We’ve launched a fundraising campaign to find 362 new monthly donors in the next 5 days. Will you be one?
As independent media with no corporate backing or billionaire ownership, Truthout is uniquely able to push back against the right-wing narrative and expose the shocking extent of political repression under the new McCarthyism. We’re committed to doing this work, but we’re also deeply vulnerable to Trump’s attacks.
Your support during our fundraiser (5 days left) will help us continue our nonprofit movement journalism in the face of right-wing authoritarianism. Please make a tax-deductible donation today.