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According to Congressional Budget Office estimates, the federal tax system is a progressive tax system for earners all but the richest 1 % of Americans.

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According to Congressional Budget Office estimates, the lowest earning 20 % of Americans ( 24. 1 million households earning an average of $ 15, 900 in 2005 ) paid an " effective " federal tax rate of 3. 9 %, when taking into account income tax, social insurance tax, and excise tax.

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