Why do poor people pay a higher percentage of their income in taxes than rich people?
Some people think that lower income people pay higher taxes than higher income people. Now, higher income people can get lower tax rates by taking money in capital gains and dividends, which are currently taxed at a 15% rate. So your regular income tax rate might be as high as 35% or so. So if you’re getting regular wage income, that could, in many cases, be taxed at a higher rate than dividends and capital gain, which is taxed at 15%. But overall, wealthier people pay much more of the tax burden than middle and lower income people. But the rates that lower income people may pay are going to be higher if they’re getting it in regular wage income, as opposed to capital gains and dividend income.
