Quoted from Miguel351:I beg to differ. This chart proves that not only do the 1%'ers pay the highest share of the total tax revenue, but they're also taxed at the highest rate compared to every other income level. That income level for the 1% is as low as 546k, too. As for someone who has ridden both sides of the top and bottom of that 50% income level mark, I'm absolutely sick and tired of hearing how the rich people need to "pay their fair share", right before they raise taxes. It's simple: the higher the tax rate, the more deductions and loopholes rich people(and their accountants) use. The lower the tax rate, the easier it is for them to just pay it and not worry about the shell game of hiding money from the IRS. I've seen it firsthand with the owners of a company I used to work for.
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Chart says it all right there. But like you said, they don’t let the facts get in the way of good political sales pitch.
The effective tax rate of the top 1%? I guarantee you it’s much higher than the average of 25.6%, as the higher you go up the ladder in terms of income in that group, there are NO further deductions once you hit that top tax bracket of 37% on income over $647,850 for married couples.
I have an effective rate of 38.6%, while the marginal rate is 37%. I pay my “fair share” and then some.
That’s 37% federal tax on every dollar above that. If you live in high tax states like New York, NJ, Cali and Illinois, with state income taxes amongst many other local taxes and fees you are well above 50%.
As a tax attorney/financial advisor myself, their are no more real meaningful “loopholes” for most people depending on what they do.
You can move to Puerto Rico and set up residency, that’s a good one!
Section 7702 is a good one for the long term.
Everybody can take advantage of the best “loophole”, a Roth IRA and Roth IRA alternatives like IULs under 7702
Deferring taxes? No thanks, tax are on sale today, will never be lower through 2025
Cap gains on pinball sales?