The USA has a progressive tax rate, at least the "sticker" rates. Once you get into advanced tax management strategies[1] it becomes a regressive tax whereby W

The USA has a progressive tax rate, at least the "sticker" rates. Once you get into advanced tax management strategies[1] it becomes a regressive tax whereby Warren Buffett[2] pays a lower rate than his secretary. [1] Hire a team of accountants, lawyers, and bankers to do your taxes. If you're really brave let the government sue you if there is a disagreement. The way budgets and incentives are set up at the IRS and Justice, the government lawyers will get a status bump for settling your case for ten cents on the dollar so they won't risk losing at trial. You might have $10m to spend on a protracted legal fight but Congress purposely underfunds the prosecution. Note that this only applies to billionaires. Garden variety millionaires can also make the system look regressive due to things like the income caps on Social Security taxes, the huge discounts in state tax equity secondary markets, a cornucopia of deductions, shifting income from W-2 to long term capital gains, and playing "will I get audited (by someone competent)" roulette. [2] Name used for illustrative purposes only. Based on the way his holdings are reportedly structured, Buffett probably doesn't engage in tax fraud. The guy just has too much money to care, it's mostly tied up in one well-structured investment, and he's donating it all to charity so why bother?