The richest 20% of families in the United States pay a much _____ share of total income taxes collected and a _____ share of FICA taxes than their share of total income.

Question

Quizplus · Accepted Answer

The richest 20% of families pay a higher share of total income taxes collected because income taxes are progressive, meaning that higher income earners pay a higher percentage of their income in taxes. However, they pay a lower share of FICA taxes because FICA taxes (which fund Social Security and Medicare) are regressive, meaning that all earners pay the same percentage of their income towards these programs regardless of their income level.

The Richest 20% of Families in the United States Pay