Many wealthy US taxpayers still paying less

March 25, 1987

The number of rich Americans able to avoid all federal income tax has dropped significantly, but 13 of every 1,000 still pay a smaller percentage than an average middle-income family. On returns filed in 1985, according to a study by the United States Treasury Department, 325 couples and individuals with incomes over $200,000 paid no tax. That was one of every 1,000 people at that income level. The figure dropped from 579 the previous year.

The number of upper-income people who paid no tax or less than that paid by the average wage-earner dropped slightly, to 3,930, on 1985 returns - about 13 of every 1,000 people at that income level who filed returns.

Treasury says a two-earner family of four with $40,000 income and average deductions paid 12 percent to the government on returns filed in 1985. A typical single person earning $30,000 paid 12 percent.