3 ms·

The capital gains rate is 23.8% for those with high income.

• spikels 13y ago
  That's just federal capital gains tax. You also need to consider state taxes. In California you pay ordinary income tax rates on capital gains of up to 13.3% for people with incomes over a million dollars. So the total tax on a capital gain in California can be as high as 37.1%.
  • alexeisadeski3 13y ago
    And likewise with income taxes. The paper cited I the source article accounts only for fed taxes. Cali income tax would toss another 8-10% on top of that 33.x% number. Low tax America! Well, I guess it is low tax it you're not rich, haha.
    • spikels 13y ago
      In California the highest marginal total income tax rate is 56.7%. While this is for incomes over a million dollars, if you make around $100,000, you face a marginal tax rate of 52.6%. I'm sure there are places with even higher marginal taxes but these don't seem low. BTW - What is really fucked up is the way very poor people face the very highest marginal tax rates due to means testing of various programs (often over 100%) but that's another story.
      • aidenn0 13y ago
        It has been as high as around 90%: http://en.wikipedia.org/wiki/File:Historical_Mariginal_Tax_Rate_for_Highest_and_Lowest_Income_Earners.jpg http://en.wikipedia.org/wiki/File:Historical_Mariginal_Tax_R...
        • alexeisadeski3 13y ago
          There were loads of loopholes back then. And before someone responds with, "there are loopholes now too, har har!": No, there really aren't those kinds of loopholes anymore. The 90% income tax existed in name only, whereas today there actually are people paying ~50% income tax in the US.