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According to the Tax Foundation[1], for tax year 2021, the top 1% of U.S. earners—those with an adjusted gross income (AGI) of $682,577 or more—accounted for 26

by crmd 1y ago

According to the Tax Foundation[1], for tax year 2021, the top 1% of U.S. earners—those with an adjusted gross income (AGI) of $682,577 or more—accounted for 26.3% of total AGI and paid 45.8% of all federal income taxes. My personal opinion is that income tax should be more progressive, but I know that plenty of smart people disagree on that. [1] https://taxfoundation.org/data/all/federal/latest-federal-income-tax-data-2024/ https://taxfoundation.org/data/all/federal/latest-federal-in...

killjoywashere 1y ago
Your source leans right-center, so probably good reason to suspect their reported top 1% AGI is low and their reported federal income tax estimate is high. https://mediabiasfactcheck.com/tax-foundation/ https://mediabiasfactcheck.com/tax-foundation/
- refurb 1y ago
  It’s IRS data. You can download it from the IRS website and replicate the analysis and prove them wrong if you’d like.
- hnburnsy 1y ago
  https://fee.org/articles/5-reasons-to-avoid-ad-hominem-arguments/ https://fee.org/articles/5-reasons-to-avoid-ad-hominem-argum...
- tbrownaw 1y ago
  1. Does not follow. Just because you don't like someone's politics doesn't mean they're dishonest. 2. Your own link contradicts you. It says explicitly that that site hasn't failed any of their fact checks and doesn't use loaded words that they say are typical of that category. It says the categorization is because the site promotes libertarian policies.
wat10000 1y ago
There are a lot more taxes than the federal income tax. It happens to be one of the most progressive taxes. Anyone focusing on that and ignoring all the others is trying to scam you.
- crmd 1y ago
  This is true for ultra high net worth individuals. They can do schemes like borrowing against equities and using the tax-free cash for expenses or purchasing other assets. It is also true for many “normal” one percenters. For example there is a service for incorporated anesthesiologists where you tell them where you plan to go on vacation and what dates, and they create a bullshit anesthesiology conference, including the brochure and other artifacts, that meet the letter of the law IRS definitions for a valid business expense. None of this stuff ever hits AGI.
  - WalterBright 1y ago
    > This is true for ultra high net worth individuals. Anyone can borrow money against their stocks, house, or credit card. It's tax-free as well. > They can do schemes like borrowing against equities and using the tax-free cash for expenses or purchasing other assets. Um, borrowing money is not "income". You have to pay it back, with interest.
    - triceratops 1y ago
      If the asset appreciates faster than the interest rate there's never a need to sell. If the interest rate is lower than the capital gains tax rate, paying the interest is cheaper than paying taxes. UHNW individuals can borrow until they die. Their assets pass to their heirs with a stepped up cost basis. The heirs can liquidate whatever's needed to pay off the loan and incur no tax. Normal people can't do this. If I die owing money, my creditors will take it out of my estate before it passes to my heirs. UHNW estates can be structured differently and creditors can accommodate different payment terms (get paid second) because they know the money's there, and it saves taxes. You can also read: https://www.reddit.com/r/BuyBorrowDieExplained/comments/1f26rsf/buy_borrow_die_explained/ https://www.reddit.com/r/BuyBorrowDieExplained/comments/1f26... I might have gotten some things wrong. Or maybe the poster has.
      - WalterBright 1y ago
        > Their assets pass to their heirs with a stepped up cost basis LOL, the stepped up basis gets hit with the inheritance tax. > The heirs can liquidate whatever's needed to pay off the loan and incur no tax. The loan and the interest payments and dont forget the inheritance tax. > Normal people can't do this. Yes, they can borrow money, die, the inheritors pay off the loan with the stocks, and then pay estate tax.

by crmd 1y ago

killjoywashere 1y ago

Your source leans right-center, so probably good reason to suspect their reported top 1% AGI is low and their reported federal income tax estimate is high. https://mediabiasfactcheck.com/tax-foundation/ https://mediabiasfactcheck.com/tax-foundation/

refurb 1y ago
It’s IRS data. You can download it from the IRS website and replicate the analysis and prove them wrong if you’d like.
hnburnsy 1y ago
https://fee.org/articles/5-reasons-to-avoid-ad-hominem-arguments/ https://fee.org/articles/5-reasons-to-avoid-ad-hominem-argum...
tbrownaw 1y ago
1. Does not follow. Just because you don't like someone's politics doesn't mean they're dishonest. 2. Your own link contradicts you. It says explicitly that that site hasn't failed any of their fact checks and doesn't use loaded words that they say are typical of that category. It says the categorization is because the site promotes libertarian policies.

wat10000 1y ago

There are a lot more taxes than the federal income tax. It happens to be one of the most progressive taxes. Anyone focusing on that and ignoring all the others is trying to scam you.

crmd 1y ago
This is true for ultra high net worth individuals. They can do schemes like borrowing against equities and using the tax-free cash for expenses or purchasing other assets. It is also true for many “normal” one percenters. For example there is a service for incorporated anesthesiologists where you tell them where you plan to go on vacation and what dates, and they create a bullshit anesthesiology conference, including the brochure and other artifacts, that meet the letter of the law IRS definitions for a valid business expense. None of this stuff ever hits AGI.
- WalterBright 1y ago
  > This is true for ultra high net worth individuals. Anyone can borrow money against their stocks, house, or credit card. It's tax-free as well. > They can do schemes like borrowing against equities and using the tax-free cash for expenses or purchasing other assets. Um, borrowing money is not "income". You have to pay it back, with interest.
  - triceratops 1y ago
    If the asset appreciates faster than the interest rate there's never a need to sell. If the interest rate is lower than the capital gains tax rate, paying the interest is cheaper than paying taxes. UHNW individuals can borrow until they die. Their assets pass to their heirs with a stepped up cost basis. The heirs can liquidate whatever's needed to pay off the loan and incur no tax. Normal people can't do this. If I die owing money, my creditors will take it out of my estate before it passes to my heirs. UHNW estates can be structured differently and creditors can accommodate different payment terms (get paid second) because they know the money's there, and it saves taxes. You can also read: https://www.reddit.com/r/BuyBorrowDieExplained/comments/1f26rsf/buy_borrow_die_explained/ https://www.reddit.com/r/BuyBorrowDieExplained/comments/1f26... I might have gotten some things wrong. Or maybe the poster has.
    - WalterBright 1y ago
      > Their assets pass to their heirs with a stepped up cost basis LOL, the stepped up basis gets hit with the inheritance tax. > The heirs can liquidate whatever's needed to pay off the loan and incur no tax. The loan and the interest payments and dont forget the inheritance tax. > Normal people can't do this. Yes, they can borrow money, die, the inheritors pay off the loan with the stocks, and then pay estate tax.