Meanwhile, wealthy Americans receive a slew of other forms of assistance that Republican lawmakers are seeking to protect. For example, the capital gains tax rate is just 15 percent, less than half of the top income tax rate of 35 percent. As a result, many middle-class workers are taxed at a far higher rate than millionaires and billionaires receiving passive income from their investments.
In addition, the Bush-era tax cuts, which predominantly help the rich, would cost the U.S. nearly $1 trillion in revenue over the next decade if extended, according to the Congressional Budget Office. Overall, the U.S. tax system is not very progressive: The top 1 percent pays a total tax rate of 29 percent, while the middle 20 percent pays a total tax rate of 25 percent, according to Citizens for Tax Justice.
Republican politicians have proposed maintaining these low tax rates for the rich, including extending all of the Bush-era tax cuts. Republican presidential nominee Mitt Romney has proposed further cutting taxes on investment income and eliminating the estate tax, which would disproportionately benefit the wealthy.
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