Referring to the table at the end of the lecture, explain who pays the biggest s

Question

Referring to the table at the end of the lecture, explain who pays the biggest share of taxes to the federal government (use % figures). Explain who pays the smallest share of taxes to the federal government (use % figures). Why is this fair or unfair?

TAXES ASA % OF INCOME 5.5% %OF ALL INCOME PERCENT OF ALL TAXES AVERAGE INCOME QUINTILE LOWEST SECOND MIDDLE FOURTH HIGHEST TOP 1% $14,900 34,200 51,500 $75,600 182,700 $1,050,100 4.2% 1.1% 12% 9.2% 5.1% 15.6% 14.2% 10.3% 19.6% 26.3% 31.1% 20.7% 1996 52.4% 64.3% 14.8% 21.5%

Explanation / Answer

According to the given table,the highest quintile is paying the biggest share of taxes to the Federal governement.It's share is equal to 64.3%.

Also,as seen in the table,the lowest quintile is paying the smallest in taxes and it's share is equal to only 1.1%

This is a fair practice as seen in the table the highest quintile accounts for total of 52.4% of all income whereas the top 1% accounts for 14.8% and also,the taxes as a percentage of income is lesser in case of highest quintile being 26.3% as compared to 31.1% for the top 1%.

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