America, Twenty Percent, Eighty Seven Percent discussed on The Truth About Money with Ric Edelman


Seven five to sixty seven forty two so let's talk taxes for a minute you no doubt know that your taxes are changing two thousand eighteen there's a new tax code and there's a lot of changes compared to what you've been used to one is the tax brackets are different there little bit lower the percentages are a little bit lower in most cases but they're big changes beyond that will one of the debates that has come up is is this tax code fair and one of the ways people look at that is we have a progressive tax structure meaning the more income you make the higher tax you pay the higher the rate well is the new tax bill making it easier for the rich harder for the rich what's the answer and there are a lot of ways you can dissect this but the tax policy center took a stab at it and they looked at the top twenty percent of income earners in america and you're in the top twenty if your income is around one hundred and fifty thousand a year or more well they said in two thousand seventeen that these top twenty percent if you will paid eighty four percent of the income taxes their estimate in two thousand eighteen is this top twenty percent their share of the total taxes is going to go up slightly to eighty seven percent so not a big change but this seems to say that there was not a big big change in the total amount of tax that the wealthy will pay moving forward compared to what they have in the past taxes are complicated and if you don't believe me look at this study the study asked a thousand adults about their federal income tax rate eighty five percent of those surveyed overstated what they actually paid and their numbers were not even close they guest on average that they pay twenty six percent in federal income taxes and the study showed that the average tax bill was around fourteen percent so i think there's a lot of confusion in taxes it's only going to be greater most likely in two thousand and eighteen because we're dealing with rules that are new we didn't have them in two thousand seventeen and so if you haven't yet taken a.

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