Dmytro Kharkov

Rich pay more than poor in U.S. tax system, Jeremy Horpedahl notes

Rich pay more than poor in U.S. tax system, Jeremy Horpedahl notes
Rich pay more in U.S. taxes

Academic estimates consistently show that the U.S. tax system is progressive, with higher-income individuals paying more than lower- and middle-income groups. Jeremy Horpedahl highlighted research from several academic teams, including Auten-Splinter, Piketty-Saez-Zucman, and Auerbach-Kotlikoff-Koehler, that all reach this conclusion.

While methodologies may vary among these studies, Horpedahl indicates their findings align regarding the relative tax burden based on income levels.

Horpedahl has previously pointed to research showing countries that adopted Washington Consensus reforms experienced greater economic freedom and higher income levels, according to his analysis. He has also compared U.S. average hourly compensation, noting it reached $38 per hour in 2024, up from 13 cents in 1894 after inflation adjustment, in a separate report. These findings offer additional context to his observations on income and tax burdens.

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