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Published on Wednesday, October 12, 2011 by The Washington Post
http://www.washingtonpost.com/business/economy/report-one-in-four-millionaires-pays-less-in-taxes-than-the-middle-class/2011/10/12/gIQAh8XNfL_story.html
by Lori Montgomery
A quarter of millionaires in the United States pay a smaller share of their income in federal taxes than many middle-class families, according to a new congressional analysis that offers fresh support for President Obama’s push to raise taxes on the nation’s wealthiest households.
The report, by the nonpartisan Congressional Research Service, found that when all federal taxes are taken into account, including taxes on wages, investment income and corporate profits, households earning more than $1 million face an average tax rate of about 30 percent — significantly higher than the roughly 19 percent rate paid by households earning less than $100,000owever, the average obscures a great deal of variation within income categories, the report says, with some millionaires paying rates as high as 35 percent and others paying rates as low as 24 percent. Using 2006 IRS data, the CRS found that about 94,500 households making more than $1 million a year paid a lower rate than the most heavily taxed households earning less than $100,000 year. About 10.4 million moderate-income families paid more than 26.5 percent of their earnings in federal taxes.
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