Hillary Clinton photo

Hillary Clinton Campaign Press Release - As New Data Reveals Top U.S. Earners Still Pay Only 23% Effective Tax Rate, Clinton Promises New Steps To Ensure Wealthiest Pay Fair Share

January 02, 2016

Following the release of new data by the Internal Revenue Service this week showing that the wealthiest 400 American households still averaged only a 22.9-percent effective tax rate in 2013, Hillary Clinton on Saturday said the figures provided fresh evidence that too many individuals are still "gaming the system" and she promised to unveil new tax proposals in January that would help ensure that the ultra-wealthy finally pay their fair share.

The 2013 data actually reflected an improvement from the year prior, when these same households paid just a 16.7-percent rate, the second-lowest mark on record. But Clinton said Saturday that even a 22.9-percent effective rate was still too low, and proved that the tax burden in the U.S. is not adequately shared.

"Thanks to President Obama's leadership, we've seen a notable uptick in the effective tax rate paid by the wealthiest Americans in 2013. But it's clear that those at the top are still gaming the system and leaving hard-working American families holding the bag," Clinton said. "A quarter of the very highest earning taxpayers, those earning more than $250 million per year on average, pay a federal income tax rate of less than 20%. That's not fair and it's not good for our economy, placing burdens on middle class families and holding back investments that would help us grow."

The IRS data was released the same week that a published report pulled back the curtain on the cottage industry of tax lawyers and personal accountants who help the ultra-wealthy shelter their income and avoid U.S. taxes. Clinton has pledged that, as President, she would seek to close many of the tax loopholes that contribute to this tax avoidance. She has also pledged support for the so-called "Buffett rule," a concept proposed annually as part of President Obama's budget that would guarantee that the wealthiest Americans pay an effective tax rate no less than 30 percent.

Today, however, Clinton said she would go further, promising that later this month, she will announce additional proposals to ensure that the wealthiest US households actually pay a fair effective tax rate on their income.

"As President, I'll do what it takes to make sure the super-wealthy are truly paying their fair share. The Buffett rule is one idea that would help achieve greater fairness in our tax system, and in the coming weeks, I will be laying out additional proposals that go beyond the Buffett rule," Clinton said.

Hillary Clinton, Hillary Clinton Campaign Press Release - As New Data Reveals Top U.S. Earners Still Pay Only 23% Effective Tax Rate, Clinton Promises New Steps To Ensure Wealthiest Pay Fair Share Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/318732

Simple Search of Our Archives