The Richest People in America Pay an 18% Tax Rate

[onehandle]

If you are a middle class person who earns the national median income of $52,000, you pay a federal tax rate of 25%. If you earned ten thousand times that much money, your tax rate would go down.

The IRS has released data on the 400 highest-earning Americans who filed tax returns in 2010, the most recent year available. This is where all of our nation's bad economic trends converge: increasing accumulation of wealth at the very top of the scale (these 400 people represent 1.3% of our country's income), matched by a system of taxation that taxes investment income at a lower rate than regular wages, which means that the richest people in the world—who profit mostly from capital gains, not salaries—end up with lower tax rates than working people. And here are the numbers, via the WSJ:

The IRS's tables show that the top 400 taxpayers had an average tax rate of 18%. But more than half, or 221, had average effective tax rates between 10% and 20%, while 37 had an average rate of less than 10%. In 2010, the top rate on wages was 35%, while the top rate on long-term capital gains and many dividends was 15%. Those rates, and their deductions, could have helped to lower the average rate paid by the 400, says Mr. Williams.

This is the most powerful argument in the world for taxing capital gains like regular income. And for instituting a maximum income, and forcibly redistributing the assets of the top .01%. At least one of the above, to start.

http://gawker.com/the-richest-people-in-america-pay-an-18-tax-rate-1663709033

What this report doesn't reflect is the massive benefits the rich get in handouts from us the taxpayer that makes them rich to begin with and maintains their wealth. My guess is that factoring that in cuts that 18% in half.

[grahamhgreen]

1. Fixing America Starts with Taxing Money Hoarders.

[Igel]

2. I don't pay 25% in taxes.

And, oddly, my income is within a couple hundred $ of median. (My wife's is above that, so our household is a bit more than twice median. Just 1 kid.)

The writer is aware of the difference between the marginal rate and the effective rate. He uses each, switching between them, to make his rhetorical point. He just doesn't bother to point out that he's changing definitions on the fly, allowing (expecting, hoping?) the reader will assume that s/he knows what the words he uses mean.

[maced666]

3. Top 1% earned 19% of all adjusted gross income and paid 35% of all fed taxes

http://money.cnn.com/2014/04/04/pf/taxes/top-1-taxes/

[SomethingFishy]

4. You know I get tired of this.

You know why the .01% pay "most" of the taxes? (they don't but let's for the sake of argument say they do)

BECAUSE THEY DONT NEED THE FUCKING MONEY.

How many houses do you need? How many cars? Boats? How much are they willing to invest in the future of the country that allowed them to become so wealthy? Not fucking much, because the rich did it all themselves, with no help from anyone. Those lazy fucking employees are lucky to have jobs let alone a "minimum wage"...

My boss owns 4 houses and 2 private planes. Yet I don't make enough money to cover my wife's medical bills. When I asked for a raise after not getting one for 9 straight years, I was told "there is no money". And I am exceptional at my job, 9 years of flawless performance gets me nothing. It got me this "If you need to make more money, go find another job".

And people wonder why the rich are getting a hard time.