The IRS just released the income statistics for the top 400 income tax returns for each of the years 1992-2006. As a group, they reported between 0.5 and 1.3% of the total income each year, yet a substantial number of the returns had marginal tax rates below the statutory maximum. You needed an AGI of more than $110million to make the elite 400 in 2006. There were 3300+ taxpayers represented in the 6000 returns for the 15 years, 8 taxpayers appeared in every one of the years. (No identification given).Full details can be found here: http://www.irs.gov/pub/irs-soi/06intop400.pdfIra
Interesting.Mostly stuff I dont understand. Table 3 lists the effective (average) tax rates by year.If I am reading this correctly, 31 of the top 400 earners had effective tax rates in the 0% to 10% range. This with an average AGI of $263 million. My effective tax rate is in that range. So I guess I do have something in common with the super wealthy!
If I am reading this correctly, 31 of the top 400 earners had effective tax rates in the 0% to 10% range. This with an average AGI of $263 million.I think that you've read that wrong. $263 million is the average across all of the top 400 rather than the 31 paying the 0% to 10% range average tax rate.Remember, our tax system is progressive so the ones paying 0% to 10% are probably the lowest income ones of the 400 group. Pity them.
I don't know about you guys, but it just boggles the mind that someone could list over $110 million in AGI, yet pay <10% in taxes.I think I average around 17% on my (upper?) middle class income.
This doesn't really surprise me. But it adds to my anger when Larry Kudlow, et al, tell me we need to forget middle class tax cuts and give more cuts to the top income brackets.
I don't know about you guys, but it just boggles the mind that someone could list over $110 million in AGI, yet pay <10% in taxes.What the heck could they be doing to get their tax rate so low? Even if it was all qual divs and LTCGs, it would still be 15%. And tax-free muni interest isn't part of federal AGI.Any of our experts care to speculate?--fleg
I think I average around 17% on my (upper?) middle class income. Hey, if you hang out here, it should be upper middle class income!The average tax rate for the top 400 (page 10 of the .pdf) is 17.7% for 2006. In 1992 it was 29%. For five years it was 22%.I'm not in this report. I wonder how Madoff and Thain stack up?Vickifool
Hey, if you hang out here, it should be upper middle class income!Ooops! Thought I was on a different board.sorry.Vickifool
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