Tax Rates for Top 400 Earners Fall as Income Soars

[evil_gop_liars]

Since 1992, the bottom 90 percent of Americans have seen their incomes rise by 13 percent in 2009 dollars, compared with an increase of 399 percent for the top 400.

[Perchoutofwater]

Someone is willing to pay them, so they must be providing something of value. I assume they still pay more in taxes than either you or me. Rather than complain about the top 400 why try to become one of them? If you have a problem with the current tax code and all of it's loopholes, why not support a flat tax and do away with all the government loopholes and the social engineering that comes with them? Or even better, why not go to a consumption tax?

[driveby]

Since 1992, the bottom 90 percent of Americans have seen their incomes rise by 13 percent in 2009 dollars, compared with an increase of 399 percent for the top 400.

and

[MrTed46]

Someone is willing to pay them, so they must be providing something of value. I assume they still pay more in taxes than either you or me. Rather than complain about the top 400 why try to become one of them? If you have a problem with the current tax code and all of it's loopholes, why not support a flat tax and do away with all the government loopholes and the social engineering that comes with them? Or even better, why not go to a consumption tax?

 

What he said

[evil_gop_liars]

and

 

You should read it. It's full of fun little facts.

 

 

Like this.

 

The smart 25

The report shows that the number of the top 400 who paid an effective tax rate of 0 percent to 10 percent declined slightly, to 25 in 2007

 

 

and the dumb 33

Only 33 of the top 400 paid an effective tax rate of 30 percent to 35 percent, which is the maximum federal tax rate.

[MrTed46]

You should read it. It's full of fun little facts.

 

 

Like this.

 

The smart 25

 

 

 

and the dumb 33

 

Fantastic accountants.

[westvirginia]

You should read it. It's full of fun little facts.

 

 

Like this.

 

The smart 25

 

 

 

and the dumb 33

 

 

Fantastic accountants.

 

Bingo on the accountants/tax lawyers. The people paying zero tax - you realize its politicians that make this possible, and it's perfectly legal, right? Doing away with the income tax and creating a consumption tax means you CAN'T dodge taxes without doing something illegal. Just food for thought...

[bpwallace49]

Bingo on the accountants/tax lawyers. The people paying zero tax - you realize its politicians that make this possible, and it's perfectly legal, right? Doing away with the income tax and creating a consumption tax means you CAN'T dodge taxes without doing something illegal. Just food for thought...

 

Or a flat tax without exemptions with a poverty floor.

[bpwallace49]

Bingo on the accountants/tax lawyers. The people paying zero tax - you realize its politicians that make this possible, and it's perfectly legal, right? Doing away with the income tax and creating a consumption tax means you CAN'T dodge taxes without doing something illegal. Just food for thought...

 

WV, this is routinely denied by most conservatives on these boards. they INSIST that all wealthy people pay over 40% in taxes. That article to prove otherwise . .. They are playing by the rules and finding every loophole in the book, that their pet congresspeople put in the tax code. But denying that is happens (as some on this forum tend to do) is intellectually dishonest.

[Perchoutofwater]

Or a flat tax without exemptions with a poverty floor.

 

I'll take either one, though I like a consumption tax better. Taxing income is a tax on ambition and ingenuity, which has to have a dampening affect on productivity.

[Perchoutofwater]

WV, this is routinely denied by most conservatives on these boards. they INSIST that all wealthy people pay over 40% in taxes. That article to prove otherwise . .. They are playing by the rules and finding every loophole in the book, that their pet congresspeople put in the tax code. But denying that is happens (as some on this forum tend to do) is intellectually dishonest.

 

Only the ultra rich can afford the team of lawyers and accountants to get it that low. Also while those in the upper brackets may find ways to get their effective rate down, they are paying a great deal of money to the accountants and lawyers to do so which isn't included in the effective rate.

[i_am_the_swammi]

I'll take either one, though I like a consumption tax better. Taxing income is a tax on ambition and ingenuity, which has to have a dampening affect on productivity.

 

Why?

 

lets see:

 

scenario 1: Work hard and make $100K, pay $28K in taxes...net $72K.

 

scenario 2: Work harder and make $200K, pay $62K in taxes, net $138K.

 

Why on earth would my ambition and ingenuity be dampened by making $66 K more in net income?

 

Only the very very very very small few that work just hard enough to sneak into the next tax brakcet feel the pain you are insinuating. Its pointless to really even bring it up.

[westvirginia]

WV, this is routinely denied by most conservatives on these boards. they INSIST that all wealthy people pay over 40% in taxes. That article to prove otherwise . . . They are playing by the rules and finding every loophole in the book, that their pet congresspeople put in the tax code. But denying that is happens (as some on this forum tend to do) is intellectually dishonest.

 

You have to realize there is a HUGH difference between the top 400 earners in the US and all those small business owners who make somewhere between $200K~$500K. The people in this study are wealthy enough to do what needs done for the tax avoidance, all those small business owners are not.

[bpwallace49]

You have to realize there is a HUGH difference between the top 400 earners in the US and all those small business owners who make somewhere between $200K~$500K. The people in this study are wealthy enough to do what needs done for the tax avoidance, all those small business owners are not.

 

I agree . . . . but that hasnt been the stance taken by some on these boards . . . ."shrug: just sayin'

 

I am also willing to bet that if you are making between 200-500K in income . . you pay an accountant to do your taxes for you, so you should be aware of some of these advantages. 100k-200k I would agree with you . . .

[westvirginia]

Why?

 

lets see:

 

scenario 1: Work hard and make $100K, pay $28K in taxes...net $72K.

 

scenario 2: Work harder and make $200K, pay $62K in taxes, net $138K.

 

Why on earth would my ambition and ingenuity be dampened by making $66 K more in net income?

 

Only the very very very very small few that work just hard enough to sneak into the next tax brakcet feel the pain you are insinuating. Its pointless to really even bring it up.

 

What about a new segment of a business that it's determined would be profitable but for taxes? New business/revenue is not produced, no additional jobs are realized and no tax revenue is realized where if the rate was lower... Half a loaf is better than none, right?

[wirehairman]

Have to agree here!

 

The top 0.0000029% of the US taxpayers (including people like Donald Trump) made a sh!t ton of money!

 

Down with The Man!

[bpwallace49]

Have to agree here!

 

The top 0.0000029% of the US taxpayers (including people like Donald Trump) made a sh!t ton of money!

 

Down with The Man!

 

funny stuff . . . . but not so funny when you see thier actual tax paid

[MrTed46]

I'm all for flat tax, even if its F'ing higher. It pisses me off people with a lower tax bracket pay less % wise. Makes no sense to me.

[evil_gop_liars]

Someone is willing to pay them, so they must be providing something of value. I assume they still pay more in taxes than either you or me. Rather than complain about the top 400 why try to become one of them? If you have a problem with the current tax code and all of it's loopholes, why not support a flat tax and do away with all the government loopholes and the social engineering that comes with them? Or even better, why not go to a consumption tax?

 

 

I'm all for flat tax, even if its F'ing higher. It pisses me off people with a lower tax bracket pay less % wise. Makes no sense to me.

 

Rather than complain about people with a lower tax bracket why not try to become one of them?

 

 

[MrTed46]

Rather than complain about people with a lower tax bracket why not try to become one of them?

 

 

My complaint isnt to those who are in the lower tax bracket, my complaint is to the govt that has brackets.

 

But, to comment on your question, that is the incentive in this country. Do less you get more benefits.

Edited February 18, 2010 by MrTed46

[Perchoutofwater]

Rather than complain about people with a lower tax bracket why not try to become one of them?

 

 

 

I don't want to be a moocher. I find some self satisfaction in being a producer, at least for now.

[wirehairman]

funny stuff . . . . but not so funny when you see thier actual tax paid

 

There are always going to be a select few that make more money or are more successful than society at large. Nothing will ever change that. Unfortunately, their success gives them the resources to hire numerous accountants and lawyers to get around taxes and other inconveniences.

 

I would rather see Washington spend their time trying to address the ever growing deficit as a whole instead of wasting time making more tax laws targeting 400 people out of 138 million taxpayers, especially when those 400 individuals will just hire more accountants and lawyers to get around the new laws.

 

One can rail against the injustice of the system all he or she wants, but I personally don't think our government's tax structure should be based upon the "exception to the rule" or a handful of statistical outliers at the upper end of the spectrum.

[keggerz]

Only the ultra rich can afford the team of lawyers and accountants to get it that low. Also while those in the upper brackets may find ways to get their effective rate down, they are paying a great deal of money to the accountants and lawyers to do so which isn't included in the effective rate.

wonder how much of those fees get written off too.

[Perchoutofwater]

wonder how much of those fees get written off too.

 

I would imagine a good deal of it, but that is just getting to write of the expense. Would you rather get to keep $100 or have to give away $100 but get to write off the expense?

[SEC=UGA]

It is simply a matter of most of their income being from Capital Gains, that is why their tax rate is lower. They are paying the appropriate rate on ordinary income.