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But the effective rate gets much closer to 50% as your income goes higher and higher, no? Within that 1%, you have people who make several hundred thousand dol
by AznHisoka 9y ago
But the effective rate gets much closer to 50% as your income goes higher and higher, no?
Within that 1%, you have people who make several hundred thousand dollars a year (I think they make up the majority of the 1%?), and their effective tax rate is closer to 34%. Whereas those who make millions a year, their effective rate is much higher, closer to 50%. Unless my math is off.
- mikeash 9y agoI doubt the people who make millions a year pay 50%. Those people tend to be good at structuring much of their income as capital gains, which is taxed much lower. Even tax on regular income tops out at about 43% including payroll taxes. It could go higher if you include other taxes such as sales taxes or state income taxes.