STUDY: Wealthiest taxpayers paying smallest percentage of income

WEST SPRINGFIELD, Mass. (WWLP)– A new study is showing that both in Massachusetts and nationwide, the highest income residents pay a smaller percentage of their income in taxes, compared to lower and middle income taxpayers.

The study done by the Institute on Taxation and Economic Policy looked at four taxes: income, real estate, excise or car tax, and sales tax.

Tax experts say that when it comes to state income tax, it’s an even playing field; meaning everyone is paying the same 5.25 percent of their income.

CPA, Andrew Pignatare, from Pignatare & Sagan in West Springfield, told 22News where it gets out of balance is when a wealthy person and a middle income person buy a car or a home of the same value.

The sales or property tax on those items comes out to be a much higher percentage of income of those making less money, than those making more.

“If you have an upper-bracketed person and a lower-bracketed person that live in the same house in the same town, they’re going to pay the same real estate tax based on the value, the person making less income has more percentage of his money going to taxes,” Pignatare said.

He also said that buying less expensive cars or properties will help keep the amount you pay in taxes each year down.

Regardless of how much you pay in taxes, now is the time to file your tax returns

Starting Tuesday, the IRS began accepting tax returns. The deadline to file your tax returns is April 15.

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