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Total SALT paid as a % of income actually _decreases_ the wealthier you are, since sales and vehicle taxes tend to be regressive. It varies by state, but on av
by jljljl 5y ago
Total SALT paid as a % of income actually _decreases_ the wealthier you are, since sales and vehicle taxes tend to be regressive.
It varies by state, but on average for the top 1%, it looks like average effective tax rate in the US comes out to around 38-39%
https://www.visualcapitalist.com/unequal-state-tax-burdens/ https://www.visualcapitalist.com/unequal-state-tax-burdens/
https://www.getrichslowly.org/effective-tax-rates/ https://www.getrichslowly.org/effective-tax-rates/
I’m not sure how to get 50% - 60%… maybe that’s referring to your top marginal tax bracket?
- deleted 5y ago[deleted]
- slumdev 5y agoNo, marginal rates don't even go that high. Once you include sales taxes (which are 12% in a jurisdiction not far from my home) and property taxes (which aren't taken against income but are still taxes), it's not hard to get to a 50-60% total tax burden (across all tax authorities).