The $1M threshold does not appear to be adjusted for inflation in this report.
Therefore a slow downward trend in tax rate is normal, as more of the
no-as-rich (who should have lower average tax rates) enter the club each year.

To make this easy to see, imagine this analysis continuing 100 years, at which
point most taxpayers will have incomes exceeding $1M in current dollars. Then
the average tax rate for millionaires will be the average tax rate for
everyone.

Posted by AMT buff on Dec. 7, 2009 at 03:46 PM

Rather than just looking at tax "rates", take a look at what people actually
pay. Not sure of the exact numbers, but these are close. The bottom 50% of
wage earners pay less than 5% of the taxes and the top 5% of wage earners pay
50% of the tax revenue. Higher income earners are continuing to pay a higher
and higher percent of the taxes.

Posted by Lee Lindquist on Dec. 8, 2009 at 01:53 PM

Interesting to see a chart comparing tax rates by income level. Expect one
would find that the rates for lower income individuals are significantly lower.

Posted by Lee Lindquist on Dec. 8, 2009 at 02:17 PM

Inflationary impacts will be very minor in this analysis. A truly interesting
chart would show the actual taxes paid as a % of income as it varies by income
level. In other words what does Joe Billionaire pay vs Joe Fat Cat vs Joe
Professional vs Average Joe vs no money Joe? More, the same, or less? Joe
Billinonaire is almost certain to have his share understated because of tax
loopholes, having many ways to transfer or hide his asset appreciation.

Posted by Joe Cool on Dec. 8, 2009 at 02:57 PM

Problem is they never stop at $250k. Those with $75k income will be paying the
old rates too. Politicians all lie, continuously. Besides the really rich
will have lawyers smart enough to evade, and if smart will flee our nation as
well implode while "spending ourselves to prosperity".

Posted by Bohomme Richard on Dec. 8, 2009 at 03:33 PM

So what if the tax rate falls for this group...they still pay waaaaaay more tax
in terms of dollars than 95% of the people out there and most don't even use
the public services such as public schools. Some people pay more income tax in
one year than most people will pay in there entire lives...not to mention all
the property taxes, sales taxes, etc. that they pay. The "rich" aren't getting
stimulus check, child tax credits, and a bunch of other benefits that lower
income earners get. People need to stop looking for the "rich" to pay for
everything. Most are simply jealous and whiners.

Posted by Enough already on Dec. 8, 2009 at 09:01 PM

I'm WAY below the $1M mark in terms of income and pay 28% in federal tax.
Lowering the tax rate for the rich on capital gains simply reinforces the
growing disparity in income levels in this country.

This is the reason that many argue for the flat tax, which is certainly better
than the current state, but you forget what 25% of income means to a person
making $1M vs. the person making $25,000.

People can argue all they want that the lower tax percentage for those making
$1M is justified because it comes out to much more in terms of dollars than a
person making less and paying a higher percentage, but I believe your argument
is bogus. I'm pretty sure if you asked the person making a lot less than $1M
if they wanted to make that kind of money but they'd have to pay more money in
taxes on their capital gains, they'd gladly ask you to give them that problem.

Posted by Amanda N. on Dec. 9, 2009 at 08:15 AM

Oftentimes, particularly in our modern society, the rich get so at everyone
else's expense. At the very least, the rich got rich off of the infrastructure
of this society so, sure, they should pay more in terms of total dollars, as
they have more dollars to give. If the rich are similiar to 'Enough already'
then it appears they too are quite the whiners.

Posted by No Thanks on Dec. 9, 2009 at 10:11 AM

Amanda:

Your marginal tax rate may be 28%, but that does not mean you pay that rate for
all of your income. If you made 500K then you would pay 140K in taxes if all
income were taxed at 28%. But it is not.

One way to cut your tax bill is to no marry. My "spouse" and I are not; she
makes about 200k and I make about 360K. Our tax bill would be a lot higher if
we were married.

I get really tired of those who say the rich got rich off the backs of others.
I started my company by taking risks with real money. Today I hire people and
give them jobs. This year everyone got a 10% raise.

Have you ever started a business "No Thanks?" My guess is you don't have the
balls to do so.

Posted by I take risks on Dec. 9, 2009 at 11:03 AM

'I take risks'

Do you always attack others with vulgar references when you do not agree with
their opinions?

If you earned your wealth honestly, with hard work and fair play, then you
should feel no ire towards my opinion, as it would not apply to you.

It is good to hear that you were able to give your employees a good raise. I
am very loyal to organizations who treat their employees well, even if it means
having to pay more for their products.

Though, you did not indicate your industry, my guess is that you still have
gained your wealth at least in part on the infrastructure of society. The
personnel you employee, were they educated in public schools? Did they attend
any state universities or cummunity colleges? Does your business rely on
roads? Does it depend on the court systems for governing transactions and the
rule of law for protection?

Simply providing jobs, does not entitle anyone to excessive rights.

I, actually, do own a business. Like you, I used real money and continue to
accept risks to achieve my goals. My personal preference, however, is to spend
my time elsewhere.

Posted by No Thanks on Dec. 9, 2009 at 12:30 PM

Would be interesting to see tax paid compared to total wealth. I would suspect
the poor to pay more tax when comparing to total wealth. www.onemanstanding.com

Posted by One Man Standing on Dec. 9, 2009 at 12:43 PM

Not going down anymore

Posted by the tax club on Dec. 30, 2009 at 10:32 AM