[nhaehnle]

The relative amount of taxes paid doesn't really change anymore once you've reached six figures. On the other hand, the absolute amount still increases, which makes it more reasonable to spend significant money on tax accountants. So, if anything, taxes should become less of a worry, because you can more easily let really good professionals take care of it.

But yes, I'm aware most people won't look at it rationally.

[charlesdm]

If you're an employee, you generally can't optimise much. Perhaps you can take some basic deductions, but that's in.

If you take two people earning $1M a year, the employee will in most jurisdictions (both relative and absolute) pay significantly more in taxes than the self employed person.

[walshemj]

At the $1M you have much more options to optimise your tax eg in the UK ESI and VCT's become practicable investments which they would not really be at say $70k

Just being able to max out your Pension and ISA at $27k is a big win for those earning enough - basically you can put £20k a year beyond the reach of CGT and Dividend Tax per year

[charlesdm]

VCTs are generally high risk, though. You might not want to make investments that way, even if you're on £1m a year. Same applies to SEIS and EIS.

And while putting £20k a year in your pension pot is nice, it's hardly a massive saving on £1m.

[walshemj]

You can put more than 20k into pensions its 20k for ISAs -though you do have to watch the max limit imposed by Red Osbourne

yes but if your on £1M a year you can risk 20-50k on EIS and VCT's don't foe get you get some very nice tax perks for VCTs (which are collective investments) et all unless your a rock star and snorting all the £ up your nose

And moving dividend paying equites into an ISA is decent tax saving esp for higher rate tax payers.