Economic Snapshot: Tax Fairness

Throughout this election cycle, you have probably heard about tax fairness and arguments that the rich need to pay their fair share. Tax fairness is the idea that the US should have a system of taxation that is clear and equivalent for all taxpayers. Currently, studies show that higher-income taxpayers have a greater ability to avoid paying taxes by taking advantage of tax expenditures and preferential rates on certain income. In fact, the average tax rate paid by the very highest-income Americans has fallen to nearly the lowest rate in more than 50 years with nearly one-quarter of all millionaires facing a tax rate lower than more than millions of middle-income tax payers.