guess the tax rate for income >138.8 million

[Extend a Hand]

http://blogs.wsj.com/economics/2010/02/17/a-look-at-the-tax-returns-of-the-top-400-taxpayers/

In its annual update of the taxes paid by the 400 best-off taxpayers, who aren’t identified, the IRS also said that only 220 of the top 400 were in the top marginal tax bracket. The 400 best-off taxpayers paid an average tax rate of 16.6%, lower than in any year since the IRS began making the reports in 1992.




:grr: :grr: This is just infuriating :grr:

[FreakinDJ]

1. Substantially less then I paid on my measly 120k

[nc4bo]

2. 16.6% huh?

Sometimes when people say something's not fair, it really isn't not. fair.

[Oregone]

3. Makes perfect sense when you think about it, outrage aside

Afterall, they own the people writing the laws. Hell, they own you.

[Raster]

5. If you own the people writing the tax laws, you get to pay substantially less.

:mad:

[formercia]

4. Rich people don't have to work, thus, little Income Tax.

Income Tax is for working people. The rich pay Capital Gains.

[Doremus]

6. Apparently that's figured in to the totals.

From the link:

"About 81.3% of the income of the top 400 households came in the form of capital gains, dividends or interest, the IRS data show. Only 6.5% came in the form of salaries and wages."

[formercia]

10. Capital Gains Tax

In the United States, individuals and corporations pay income tax on the net total of all their capital gains just as they do on other sorts of income, but the tax rate for individuals is lower on "long-term capital gains," which are gains on assets that had been held for over one year before being sold. The tax rate on long-term gains was reduced in 2003 to 15%, or to 5% for individuals in the lowest two income tax brackets (See progressive tax). Short-term capital gains are taxed at a higher rate: the ordinary income tax rate. The reduced 15% tax rate on eligible dividends and capital gains, previously scheduled to expire in 2008, has been extended through 2010 as a result of the Tax Increase Prevention and Reconciliation Act signed into law by President Bush on May 17, 2006 (P.L. 109-222). In 2011 these reduced tax rates will "sunset," or revert to the rates in effect before 2003, which were generally 20%.

The IRS allows for individuals to defer capital gains taxes with tax planning strategies such as the structured sale (ensured installment sale), charitable trust (CRT), installment sale, private annuity trust, and a 1031 exchange. The United States is unlike other countries in that its citizens are subject to U.S. tax on their worldwide income no matter where in the world they reside. U.S. citizens therefore find it difficult to take advantage of personal tax havens. Although there are some offshore bank accounts that advertise as tax havens, U.S. law requires reporting of income from those accounts and failure to do so constitutes tax evasion.


http://en.wikipedia.org/wiki/Capital_gains_tax#United_States_of_America

[WatchWhatISay]

8. Capital gains ARE a type of income, and they are included

as income on Form 1040.

[Oregone]

11. But, they are typically taxed at a flat 15%, right?

[formercia]

13. The lowest two tax brackets only pay 5% on long-term Capital Gains. n/t

[hfojvt]

19. actually wiki is wrong

the lowest bracket pays 0%. My capital gain from last year is tax free at the federal level. See page D-10 of the 1040. If your income is below $33,950 for a single person or $67,900 for a couple. I don't see 5% anywhere on that form.

[Statistical]

21. Correct. The 5% was for years 2003-2007. 0% is for 2008-2010, it goes back to full rate in 2011.

So if you have any other unrealized gains be sure to sell them prior to DEC 31, 2010.

[Statistical]

20. 15% for "long terrm" (held for 365+ days)

Long term cap gains = 15% (0% if you are in 10% or 15% bracket but that expires at end of 2010)
Short term cap gains = normal income bracket (10%,15%,25%,28%,33%,35%)

Long Term = held for 365+ days
Short Term = held for 364 days or less

Dividends are treated as long term cap gains.
Interest is treated as regular income.

All that expires automatically at end of 2010.

[Extend a Hand]

15. yeah and they ought to be taxed at the same rate as

ordinary income in name of basic fairness.

[Statistical]

22. They will in 2011.

The reduction in dividend & long term capital gains were part of Bush tax cuts.

They expire at end of 2010.

Unless renewed rate on all income will be normal tax rates in 2011.

[Frustratedlady]

7. Obscene!

[upi402]

9. 16.6% for the richest 400 taxpayers?

Why why WHY do I constantly get scolded by righties that the rich pay the vast majority of taxes?

[RUMMYisFROSTED]

16. The rich do pay the majority of taxes.

The rub is that it's significantly lower than the percentage of the wealth they control.

[upi402]

18. Yep, tax receipts often cited

The rich manage to get richer somehow. Obama DID lower taxes on most of us. Rethugs think he raised taxes.

[Statistical]

23. The rich DO pay the majority of INCOME taxes.

The righties like to use that stat. INCOME taxes, not all taxes.

All taxes = income tax +payroll taxes (SS+Med) + sales taxes + state income tax + real estate taxes + excise taxes (15% of cellphones is govt fees & taxes) + fees for services (DMV fees) + misc taxes (gas tax, alchohol tax, firearm tax, cig tax, etc)

If you look AT ALL TAXES the rich still pay more but it isn't nearly as black a white.

Which is often why the debate is rich pay x% of INCOME tax.

[Name removed]

12. Deleted message

Message removed by moderator. Click here to review the message board rules.

[winyanstaz]

14. This has to change

[Atticus]

17. Torches? Check. Pitchforks? Check. Let's go! nt

[cbdo2007]

24. Can someone please help me understand this? Here are my questions....

Let's say someone has a salary of and has non-capital gains income of $25 Million....then they make an additional $75 Million in capital gains.

I understand that the $75 Million would be at the 15% long term capital gains rate....then what about the $25 Million?

I assume it is taxed at their "normal" tax rate of 35%, but can't they put all of that into tax-free IRA's and Bonds and stuff? Specifically I guess I'm wondering how they get to that average of 16.6% tax rate.

They're banking their actual "income" somehow tax free (the $25 Million in my example) but aren't there limits to how much they can set aside tax free?

I'm infuriated by this as well and can't believe it's not getting more attention here at DU. My wife and I make $70,000 per year together and we're paying at least 20% every year in taxes. No matter where you get your income, there should never be any scenario where someone making $100 Million per year is paying a smaller tax rate than I am. Damn, at least it should be equal!!!!