Overview

• The Forbes 400 paid an average effective tax rate of about 24% from 2018 to 2020, versus roughly 30% for other U.S. taxpayers.
• The analysis assigns a share of corporate taxes to company owners when calculating total burdens, with corporate levies contributing about nine percentage points to the wealthy’s rate.
• Researchers report the richest Americans’ effective rate fell from about 30% in 2010–2017 to roughly 24% after the 2017 Tax Cuts and Jobs Act.
• President Trump’s July 4 tax package extends and adds breaks for high earners, including raising the estate‑tax exemption to $15 million per person from about $14 million.
• Saez and Zucman say lower taxation of capital income and the ability to defer realizing gains drive the gap, and they argue the findings strengthen the case for a wealth tax.