Answer: C. Thanks in large part to the exceedingly generous 15% capital gains and dividend taxes, most of the super-rich pay a lower tax rate than middle-class filers making $69,001 per year.
A. The top 1%
B. The Bottom 20%
Answer: B. Taxpayers in the bottom 20% pay, on average, 8.8% of their income into Social Security. Those at the top pay, on average 1.6% of their income into Social Security.
A. The top 1%
B. The bottom 20%
Answer: B. Depending on the state, the bottom 20% of earners pay between 6.7 and 1.1 times as much of their paycheck in state taxes.
Answer: B. While he has become the patron saint of tax cutters, for most of Ronald Reagan's presidency, the top tax rate was much higher than it is today.
Answer: C. Under President Nixon, there were also up to 33 tax brackets. Today, there are six.
Answer: D. The first big drop in the top tax bracket -- to 77% -- happened under John F. Kennedy.
C. $5.12 million
D. $10 million
Answer: C. In 2001, the estate tax exemption topped out at $675,000, and the top rate was 55%. Today, the exemption is $5.12 million, and the top rate is 35%. Side note: $5.12 million represents the average yearly earnings of over 103 households – none of whom would get a 100% exemption on their taxes.
Answer: B. The period right before the Great Depression witnessed one of the biggest income distribution gaps in U.S. history.
Answer: B. In the 1950's, America's thriving middle class was flush with cash. Their free spending further increased employment, creating a virtuous economic cycle.
Answer: D. In other words, income distribution in the U.S. today is more unbalanced than it was before the Great Depression.
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