How much does the average person in the United States pay in local, state and federal taxes?
Robert McIntyre: Federal taxes, including everything, amount to about a sixth of a person s or couple s income. State and local taxes add another 12 percent, for a total of about 29 percent. In dollars, that averages a little over $10,000 a year. MM: How progressive are the tax structures? McIntyre: At the federal level, which is progressive, poor people pay the least, about 8 percent of their incomes. Rich people pay a little over a quarter of their income in taxes. The middle people are in the middle. On the state and local level, it is flipped: Poor people pay the most, about 13 percent, the middle people pay around 12 percent, and the richest people pay around 9 percent. MM: Overall, what kind of impact do taxes have on income and wealth distribution? McIntyre: They even things out a little. They are just a little progressive overall; it does not have a major effect. Of course the tax system funds a lot of government programs, some of which help the lower incomes, some particularly
