The poorest fifth pays a significantly higher proportion in taxes to states and localities than does the top 1%.

Question

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Multiple studies have shown that the poorest fifth of Americans pay a larger percentage of their income in state and local taxes than the wealthiest 1%. State and local taxes include sales taxes, property taxes, and income taxes. These taxes tend to be regressive, meaning they take a larger percentage of income from low-income individuals compared to high-income individuals. In contrast, federal taxes are generally progressive, meaning they take a larger percentage of income from high-income individuals.

The Poorest Fifth Pays a Significantly Higher Proportion in Taxes