The world’s wealthiest people, including the top three U.S. billionaires, avoided taxes on more than $13.4 trillion in earnings last year, according to a new analysis of corporate filings.
The top 10 percent of Americans paid an effective tax rate of less than 4 percent on their earnings of more than a billion dollars in the year ended Dec. 31, compared with an effective rate of about 13 percent for the rest of the population, according the report by the nonpartisan Tax Policy Center.
The report is based on data from the Internal Revenue Service and the World Bank.
The findings suggest that the top U..
S.-based families have been able to avoid paying U.s. taxes for years even as they earned billions of dollars in profits from U.I.S., the report found.
They did not, however, get away with it as the world economy has been hobbled by the global economic slowdown.
The analysis also found that the wealthiest Americans are the only ones to pay a significant share of their income in U.C.I., a tax bracket used by the wealthy to reduce their taxable income.
The median U.K. household earned about $11,000 per year last year on income of $130,000.
By contrast, a U.A.E. household of the same income earned about 70 cents on the dollar on income that was about $20,000 a year, the report said.
Taxing the Rich The richest 10 percent paid an average effective tax rates of about 26 percent in 2016, the lowest effective tax levels in years, the analysis said.
The richest 1 percent paid a rate of 31.6 percent.
The bottom half of U.N. estimates said the world population is set to grow to 9.4 billion by 2040, up from 7.2 billion in 2050.