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Billionaires Pay Lower Effective Tax Rates Than Average Americans, New Data Show

BLACKPRESSUSA NEWSWIRE — A new study by the National Bureau of Economic Research (NBER) reveals that America’s wealthiest billionaires pay a lower share of their income in taxes than most workers and even less than the national average.

Published

1 year ago

August 27, 2025

Stacy M. Brown

By Stacy M. Brown
Black Press USA Senior National Correspondent

A new study by the National Bureau of Economic Research (NBER) reveals that America’s wealthiest billionaires pay a lower share of their income in taxes than most workers and even less than the national average.

The analysis, conducted by economists Akcan S. Balkir, Emmanuel Saez, Danny Yagan, and Gabriel Zucman, used administrative data from 2010 through 2020, matching Forbes’ list of the 400 richest Americans with individual, business, estate, and gift tax returns. It found that the top 0.0002 percent of households—roughly the “Forbes 400”—paid an average total effective tax rate of 24 percent from 2018 to 2020. That compares with 30 percent for the overall U.S. population and 45 percent for top labor income earners. The authors define the effective rate as all taxes paid relative to “economic income,” which includes labor income, business profits, and capital gains. The report concludes that billionaires “appear less taxed than the average American” when all sources of wealth are considered.

Why the Wealthiest Pay Less

The findings point to structural features of the U.S. tax code. C-corporations owned by billionaires distribute relatively little in dividends, which minimizes individual income tax unless the stock is sold. Passthrough businesses—such as partnerships and S corporations—often report negative taxable income despite high profits, further limiting tax bills.

The researchers found that between 2010 and 2017, billionaires’ effective tax rates averaged about 30 percent, but that fell to 24 percent in the years after Donald Trump’s Tax Cuts and Jobs Act of 2017. The law slashed the federal corporate rate from 35 percent to 21 percent and expanded provisions like full expensing of investment, allowing companies to reduce taxable income even with high book profits.

Estate and gift taxes also make little difference. Decedents in the Forbes 400 paid just 0.8 percent of their wealth in estate tax when married and 7 percent when single. Annual charitable giving by the group equaled 0.6 percent of wealth and 11 percent of economic income in 2018–2020.

The Corporate Tax’s Outsized Role

Corporate taxes remain a major source of government revenue from billionaires. About 9 percentage points of the top 400’s 23.8 percent effective rate comes from corporate tax. By contrast, their individual income taxes amounted to just 11 percent of economic income. When measured against wealth instead of income, the richest Americans paid only 1.3 percent of their holdings in taxes annually in 2018–2020—down from 2.7 percent in 2010–2013.

International Comparisons

The United States is not alone in seeing ultra-rich households taxed at lower rates. Similar studies show billionaires in the Netherlands pay less than 20 percent of economic income, while in France, the top 0.0002 percent paid 26 percent in 2016. Still, U.S. billionaires’ individual income tax rates—about 11 percent of economic income—are higher than those in parts of Europe, where personal holding companies allow greater avoidance.

The researchers caution that the effective rate at the very top is heavily dependent on how economic income is defined, but across multiple approaches, the results remain consistent: the richest households are taxed at lower rates than most Americans. “Ultra-high-net-worth individuals appear less taxed than the average American,” the authors wrote.

Stacy M. Brown

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Youth-Led Black August Event Brings Past to Present at East Oakland Boxing Association

The mission of Youth Alive! Is to “break the cycle of violence, heal trauma, and uplift a thriving community of leaders, to save lives in Oakland and beyond” by serving “as mentors, youth leaders, counselors, case managers, intervention specialists and violence interrupters,” working “to help violently wounded people heal themselves and their community.”
The post The mission of Youth Alive! Is to “break the cycle of violence, heal trauma, and uplift a thriving community of leaders, to save lives in Oakland and beyond” by serving “as mentors, youth leaders, counselors, case managers, intervention specialists and violence interrupters,” working “to help violently wounded people heal themselves and their community.” appeared first on BlackPressUSA.

Published

2 weeks ago

August 29, 2026

Oakland Post

By Jana Lang Propel Youth Reporter

Youth-Led Black August Event Brings Past to Present at East Oakland Boxing Association

The East Oakland Boxing Association (EOBA) and Youth Alive! came together on Aug. 21 to share with their community all that Black August means to them.

Held on EOBA’s patio at 816 98th Ave. in Deep East Oakland, the two organizations hosted their second annual Black August Experience, featuring a food tasting, financial literacy and mindfulness workshops, and voter registration with the League of Women Voters Oakland (LWV).

Black August is known as a time to uphold the legacy of prisoners who protested their conditions by fasting, fighting, and educating themselves on the economic and political circumstances that contributed to their incarceration.

According to its website, “EOBA is a multi-service youth and community development hub that goes far beyond the ring. While rooted in the discipline of boxing, for nearly 40 years EOBA has also integrated robust programs in workforce development, food justice, afterschool enrichment, financial literacy, mentorship, and wellness.”.

The mission of Youth Alive! Is to “break the cycle of violence, heal trauma, and uplift a thriving community of leaders, to save lives in Oakland and beyond” by serving “as mentors, youth leaders, counselors, case managers, intervention specialists and violence interrupters,” working “to help violently wounded people heal themselves and their community.”

Through Coro California, another leadership organization serving young people across the state for 80 years, they gained a broader understanding of Black August.

EOBA Executive Director Dawna Williams spoke about how much she learned about Black August from the youth who created it. “I let them educate me,” she said. Instead of talking about prison reform and mass incarceration, Williams and youth interns found that Black August meant so much more. “We would have done a disservice if we had just focused on who the people were and what their situation was…We tried to take their message from back in the day and make it relevant to the young people today. What do they need to know?”

Youth interns created and placed posters around the patio to help participants understand how traditional Black foodways, civic engagement, financial literacy, and the power of education are relevant to Black resistance today.

An EOBA member described Black August with Youth ALIVE! as “a whole vibe. “This year we added the Fun Zone for the kids, because you really cannot go wrong with a Fun Zone. I also loved seeing everyone chillin’ in the outdoor lounge, catching some Vitamin D and just enjoying a Friday evening together.”

The food tasting, a popular event from last year, featured traditional Black foods such as black-eyed peas, johnny cakes, and fried chicken. Led by Williams, the tasting included a talk about how these traditional foods were made and why they are forms of Black resilience.

The “‘Plate of History’ was a favorite of the online writers. “Fun, educational, and did I mention delicious? Our Taste of History cook, Angela Southall, served up some good eats while connecting food to history and culture.”

The writer also commended the “League of Women Voters Oakland for their civic leadership and for getting our young people informed, ready, and registered to vote.”

Overall, it was a “good Friday event in East Oakland,” the writer said.

Upcoming Black August events: Building Opportunities for Self-Sufficiency (BOSS), will host “Black August: The Arc of Liberation” at Oakland City Hall on Sat. Aug. 29, from 11 a.m. to 3 p.m.

The websites for East Oakland Boxing Association, Youth Alive! and CORO are sources for this report.

Jana Lang is an Oakland resident, teacher, gardener and poet participating in the Propel News Initiative.

The post The mission of Youth Alive! Is to “break the cycle of violence, heal trauma, and uplift a thriving community of leaders, to save lives in Oakland and beyond” by serving “as mentors, youth leaders, counselors, case managers, intervention specialists and violence interrupters,” working “to help violently wounded people heal themselves and their community.” appeared first on BlackPressUSA.

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EV Home Charging Warning: What Dealerships Won’t Tell You! #shorts

Is your home EV charging setup ready? Dealerships may not warn you about critical outlet and circuit needs. Find out before you plug in!
The post EV Home Charging Warning: What Dealerships Won’t Tell You! #shorts appeared first on BlackPressUSA.

Published

2 weeks ago

August 29, 2026

Oakland Post

Dealerships won’t tell you: charging this big battery at home isn’t always simple. Verify your outlet capacity, circuit, and setup before assuming level one or basic outdoor outlets will suffice.

Watch the full video: https://youtu.be/A9Cd2SspoaQ

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The post EV Home Charging Warning: What Dealerships Won’t Tell You! #shorts appeared first on BlackPressUSA.

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Car Buying Secrets: Dealership Traps & How to Avoid Them #shorts

Don’t get tricked at the dealership! Learn essential car buying secrets to secure the best deal and avoid hidden traps.
The post Car Buying Secrets: Dealership Traps & How to Avoid Them #shorts appeared first on BlackPressUSA.

Published

2 weeks ago

August 29, 2026

Oakland Post

Before stepping into a dealership, secure bank pre-approval for your financing rate. Then, get the out-the-door price in writing. Never discuss monthly payments until that number is fixed. Test road noise and rear visibility yourself. Decline add-ons with a simple ‘Not today’. Check backseat space with your tallest household member.

Watch the full video: https://youtu.be/maAOBjO1puY

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The post Car Buying Secrets: Dealership Traps & How to Avoid Them #shorts appeared first on BlackPressUSA.