Richest 400 Americans paid lower taxes than everyone else in 2018

Trévon Austin

According to an analysis by noted economists Emmanuel Saez and Gabriel Zucman, previewed this week by New York Times columnist David Leonhardt, the wealthiest American households paid a lower tax rate last year than every other income group for the first time in the country’s history.

Saez and Zucman, both professors at the University of California Berkeley, detail the phenomenon of declining taxes for the richest Americans in their soon-to-be released book, The Triumph of Injustice .

The pair compiled a historical database composed of the tax payments of households in various income percentiles spanning all the way back to 1913, when the federal income tax was first implemented. Their research uncovered that in the 2018 fiscal year the wealthiest 400 Americans paid a lower tax rate—accounting for federal, state, and local taxes—than anyone else.

The overall tax rate paid by the richest .01 percent was only 23 percent last year, while the bottom half of the population paid 24.2 percent. This contrasts starkly with the overall tax rates on the wealthy of 70 percent in 1950 and 47 percent in 1980.

Los 400 estadounidenses más ricos pagaron menos impuestos que el resto en 2018

The taxes on the wealthy have been in precipitous decline since the latter half of the 20th century as successive presidential administrations enacted tax cuts for the rich, suggesting that they would result in economic prosperity for all. Taxes that mostly affect the wealthy, such as the estate tax and corporate tax, have been drastically cut and lawyers have been hard at work on behalf of their wealthy patrons, planning out the best schemes for tax avoidance, seeking to drive tax rates as close to zero as possible. The impetus for the historical tipping point was the Trump Administration’s 2017 tax reform, which was a windfall for the super-rich.

Supported by both the Republicans and Democrats, the two parties of Wall Street, Trump’s tax cuts were specifically designed to transfer massive amounts of wealth from the working class to the ruling elite.