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The long-term data show that under current tax and economic rules, the incomes of the top earners rise when the economy expands and contract during recessions, only to rise again. Their effective income tax rate fell to 16.62 percent, down more than half a percentage point from 17.17 percent in 2006, the new data show. That rate is lower than the typical effective income tax rate paid by Americans with incomes in the low six figures, which is what each taxpayer in the top group earned in the first three hours of 2007.
tax.com: Featured Articles: Tax Rates for Top 400 Earners Fall as Income Soars, IRS Data (http://www.tax.com/taxcom/features.nsf/Articles/0DEC0EAA7E4D7A2B852576CD00714692?OpenDocument - broken link)
Another sleazy inflammatory bigoted anti-rich article...
Most of the wealth of the 400 richest is in the form of capital gains,so with a top rate of 15% it's quite normal to have an effective tax rate of 16.67 %...
Do you think they will make that kind of money forever, highly unlikely. I am also suspect of this report, it does not explain how it got those numbers and they have an agenda to want to lower the tax burden on mid high income earners. Besides they are also talking about a small % and who knows, maybe rich people have more deductions to encourage them to spend more to create more jobs, which is not a bad idea
The long-term data show that under current tax and economic rules, the incomes of the top earners rise when the economy expands and contract during recessions, only to rise again. Their effective income tax rate fell to 16.62 percent, down more than half a percentage point from 17.17 percent in 2006, the new data show. That rate is lower than the typical effective income tax rate paid by Americans with incomes in the low six figures, which is what each taxpayer in the top group earned in the first three hours of 2007.
tax.com: Featured Articles: Tax Rates for Top 400 Earners Fall as Income Soars, IRS Data (http://www.tax.com/taxcom/features.nsf/Articles/0DEC0EAA7E4D7A2B852576CD00714692?OpenDocument - broken link)
the bottom 50% of all income earners pays less than 3% of all taxes....FACT
most people making under 50k pay ZERO in taxes, and even get back more than they paid in
Do you think they will make that kind of money forever, highly unlikely. I am also suspect of this report, it does not explain how it got those numbers and they have an agenda to want to lower the tax burden on mid high income earners. Besides they are also talking about a small % and who knows, maybe rich people have more deductions to encourage them to spend more to create more jobs, which is not a bad idea
From the link:
"In 2007 the top 400 taxpayers had an average income of $344.8 million, up 31 percent from their average $263.3 million income in 2006,according to figures in a report that the IRS posted to its Web site without announcement that were discovered February 16. (For the report, see Tax Analysts Doc 2010-3372 .)"
Also from the link:
"Adjusted for inflation to 2009 dollars, the top 400 enjoyed a 27 percent increase in their income, or nine times the rate of increase for the bottom 90 percent, based on an earlier analysis of tax data published by Profs. Emmanuel Saez and Thomas Piketty, economists at the University of California at Berkeley who have been studying global income trends."
The average daily income for these people is truly astounding.
What he is trying to argue is that those who make 6 figues are paying more taxes as a % than the 400 richest americans by earnings.
No one tries to make those silly arguments that the rich don't pay their fair share any more it is long disproven
FACT:
When you count state and local taxes, the people who earn the least pay MORE in taxes than the people who make the most money AS A PERCENTAGE OF INCOME.
The long-term data show that under current tax and economic rules, the incomes of the top earners rise when the economy expands and contract during recessions, only to rise again. Their effective income tax rate fell to 16.62 percent, down more than half a percentage point from 17.17 percent in 2006, the new data show. That rate is lower than the typical effective income tax rate paid by Americans with incomes in the low six figures, which is what each taxpayer in the top group earned in the first three hours of 2007.
Better to look at the real data:
The effective tax rate of the top 1% for years 2000-2006 were as follows:
24.2%
24.1%
23.7%
20.4%
19.7%
19.3%
19.0%
The top quintile (top 20%):
17.5%
16.3%
15.5%
13.7%
13.9%
14.1%
14.1%
The 4th highest quintile (next 20%):
8.1%
7.1%
6.7%
5.9%
5.9%
5.9%
6.0%
The middle quintile (middle 20%):
5.0%
3.9%
3.6%
2.8%
3.0%
3.0%
3.0%
The bottom 40% have a negative effective tax rate, which means they get more back from the government than they pay to the government in taxes.
"In 2007 the top 400 taxpayers had an average income of $344.8 million, up 31 percent from their average $263.3 million income in 2006,according to figures in a report that the IRS posted to its Web site without announcement that were discovered February 16. (For the report, see Tax Analysts Doc 2010-3372 .)"
Also from the link:
"Adjusted for inflation to 2009 dollars, the top 400 enjoyed a 27 percent increase in their income, or nine times the rate of increase for the bottom 90 percent, based on an earlier analysis of tax data published by Profs. Emmanuel Saez and Thomas Piketty, economists at the University of California at Berkeley who have been studying global income trends."
The average daily income for these people is truly astounding.
I don't think you know what numbers I am talking about. Firstly we don't even know if these are the same 400 people from the previous filing, for all we know the people who were in the 400 richest are all broke now like madoff!
Also I am suspect of the numbers because it is looking at a 1 year return, the reality is many super rich people end up living middle class lifes or even poor when they mismanage their money or make a few bad investment (think donald trump bankrupt). As well it is also assuming the people who were poor last year were poor again the following year and most studies show the average poor person is only poor for 5 years. If you have a good job, but were a vicitim of outsourcing or mortgage crisis odds are your poorness is temporary.
Yes the number may be true, but it does not necessarily mean what th author is trying to conclude is right
the bottom 50% of all income earners pays less than 3% of all taxes....FACT
most people making under 50k pay ZERO in taxes, and even get back more than they paid in
That bottom 50% only make 10% of the income.
Your second sentence is just plain hogwash, unless you know alot of people that just flat out cheat on their taxes.
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