China and the United States approach income and wealth differently, especially when considering how the rich, middle class, and poor are affected.
1. United States (U.S.) Tax Approach a. High-Income / Ultra-Rich: Income Taxes: The U.S. uses a progressive federal income tax system; the highest marginal rate is 37% (as of 2026) for individuals earning above roughly $600,000 per year. Capital Gains Taxes: Wealthy Americans often earn more from investments than wages, which are taxed at lower rates (0–23.8% depending on income and type of gain). Wealth Inequality Factor: Many rich people use tax deductions, offshore accounts, trusts, and business structures to reduce effective tax rates, sometimes far below the statutory rate. Estate Taxes: The U.S. has an estate tax, but it applies only to very large estates (over $13.6 million for individuals), so most inheritances are untaxed. b. Middle Class / Hard-Working: Income Taxes: Progressive but lower brackets; they pay between ...