Average Income Tax Rate for the top 400

[Malachi151]

This isn't a trick question, I just want to see how close people are to really knowing how much people pay in taxes.

[LuxFerum]

less than 20%?:confused:

[Shane Costello]

Isn't it more pertinent to ask what proportion of the income tax take is payed by the top 400, and how this would be effected by higher marginal rates of income tax?

[Jaggy Bunnet]

Just to be clear, we are talking about a percentage of their income, not of their wealth?

[Malachi151]

Originally posted by Jaggy Bunnet
Just to be clear, we are talking about a percentage of their income, not of their wealth?

What was the income tax rate paid by the top 400 richest?

This is not a trick question. When they filed their income taxes, what percentage of their AGI went to federal income tax?

[Kodiak]

Here's what I found... (http://www.va.gov/publ/direc/finance/00ga2_02Bul.htm)


From my link:

91,857.00 PLUS 39.600% OVER 289,950.00

[Malachi151]

I'll wait 'til this afternoon to post the anwser.

[Tmy]

What is this Jeapordy? Dont be such a douche, just post the damn thing!

I wonder just how much they get in "income".

[American]

Originally posted by Malachi151
I'll wait 'til this afternoon to post the anwser.


Kodiak already posted it, genius boy. (Well, his document is from 2000. It may have changed slightly.)

[Kodiak]

Originally posted by American



Kodiak already posted it, genius boy. (Well, his document is from 2000. It may have changed slightly.)

If you read the wording of his poll, that's what he's asking for.

It could have been a typo though, I guess.

[Jaggy Bunnet]

As I understand it, the rate quoted by Kodiak is for salaries. Although not US based, I do know that lower rates are available for capital gains (I think as low as 20%), which would make the average rate lower. It is also probable that the returns with the highest income will contain a high proportion of capital gains compared to income, so the average rate would reflect this.

[Malachi151]

Income tax inclused capital gains, dividends, corporate, paroll, gift, estate, taxes etc. It does not include Social Security taxes, etc.

The figure I'm looking for is how much of their total income actually goes to federal income tax.

The top earned income tax bracket ws 39% in 2000, but no one pays the rate of the bracket that they are in, everyone pays much less due to deductions, other forms of income, etc.

And just for info in 2000 72% of the income reported for the top 400 was in the form of capital gains.

[Tmy]

Why are we always bombarded wh the rich "paying 50% in income taxes" line all the time. Is that just a myth.

[Jaggy Bunnet]

Originally posted by Tmy
Why are we always bombarded wh the rich "paying 50% in income taxes" line all the time. Is that just a myth.

Could the 50% include state taxes and social security contributions? If 39% is the top federal rate, I would have thought that adding these in would get you pretty close to 50%.

[Kodiak]

Tax Freedom Day (http://www.taxfoundation.org/taxfreedomday.html)

[Malachi151]

The correct anwser to this question is 22%

http://www.taxpolicycenter.org/TaxFacts/overview/top400.cfm

This is a page from my website that is not finished yet, but it shows some realted tax and income data, it still has a ways to go, but just in case you are interested:

http://www.rationalrevolution.net/american_income_taxation.htm

[tedly]

Originally posted by Kodiak
Tax Freedom Day (http://www.taxfoundation.org/taxfreedomday.html)

Does anybody calculate a corporation's tax free day in the US? In Canada it's sometime in January

[Malachi151]

If I'm reading the data right then for 2000 the average gross income for the top 400 was $173,915,617 with $38,765,791 as the average amount paid in income taxes.

The average total federal taxes would be more close to 32%, or $55,6500,000 in total Federal income tax liability.