Are Billionaire Taxes Falling? That Depends On Who You Think Pays Corporate Taxes.
The highest-income Americans pay only about 23 percent of their income in taxes, with billionaires having a lower effective tax rate than working-class Americans. Berkeley economist Gabriel Zucman argues that owners of capital receive all the benefits of corporate tax cuts, while other economists believe that workers also benefit through higher wages. The burden of corporate taxes may shift over time, with highly-paid employees bearing more of the burden initially, but workers benefiting once firms implement productivity-enhancing investments. Only about 28 percent of publicly traded corporate stock is held by taxable entities, highlighting the ongoing debate over corporate tax incidence.
