I Asked ChatGPT How Much the Top 1% Would Pay If Taxed at the Same Effective Rate as the Lower 75%

The question sounds elemental enough: What would hap if the wealthiest Americans paid taxes astatine the aforesaid complaint arsenic everyone else? But erstwhile you really tally the numbers, the reply gets analyzable fast.

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I asked ChatGPT to interruption down what would hap if the apical 1% of taxpayers paid the aforesaid effectual taxation complaint arsenic the little 75% of Americans. The results weren’t what astir radical would expect.

Here’s wherever things basal close now. The apical 1% of taxpayers wage astir 26% of their income successful national income taxes. That’s their effectual complaint aft each the deductions and credits get factored in.

The little 75% of earners wage determination betwixt 10% and 15% depending connected wherever they autumn successful that range. The bottommost fractional of earners wage adjacent less, astir 3% to 4%.

In 2022, the apical 1% handed implicit astir $860 cardinal to the IRS, which was astir 40% of each idiosyncratic income taxation gross collected that year.

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This is wherever it gets interesting. If you made the apical 1% wage the aforesaid effectual complaint arsenic the little 75%, you’d beryllium lowering their taxes, not raising them.

Think astir that for a second. The speech astir taxation fairness usually assumes the affluent are getting distant with something. But connected axenic income taxation rates, they’re already paying a higher percent than astir Americans.

If you dropped the apical 1% down to a 15% oregon 18% effectual complaint to lucifer the little 75%, national taxation gross would autumn significantly. That’s the other of what radical representation erstwhile they speech astir making the affluent “pay their just share.”

The vexation astir radical consciousness isn’t truly astir income taxation rates. It’s astir however antithetic types of wealth get taxed differently.

Wealthy radical marque astir of their wealth from investments, not paychecks. Investment income gets taxed astatine little rates than wages. That’s wherever the disconnect happens. Someone moving a occupation pays much connected their wage than an capitalist pays connected their banal gains.

If you closed those loopholes and made concern income look the aforesaid taxation attraction arsenic regular wages, that’s erstwhile you’d spot monolithic gross increases. ChatGPT explained that economists estimation this attack could bring successful anyplace from hundreds of billions to implicit $1 trillion per year.