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by birdmanjeremy 2513 days ago
This is misleading. Top tax rates can be as high as 50.3%, but the parent comment says they are paying 51% of their earnings. These are two different things, because of tax brackets. I was both taxed a marginal rate of 48.3% and had an effective tax rate of 40.6% (CA resident).
1 comments
paulsutter 2513 days ago
While you obviously have an above average income, there really are people that pay very close to the marginal rate ($10M income etc). Asymptotically, the marginal rate is the top rate.
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snowwrestler 2513 days ago
For those curious, IRS reported that in 2016, just over 16,000 people in the U.S. reported an adjusted gross income of $10 million or more.

555 of them took the standard deduction instead of itemizing!

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jurassic 2513 days ago
Interesting. Where did you come across that stat?
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snowwrestler 2513 days ago
IRS provides statistics about federal taxes:

https://www.irs.gov/statistics/soi-tax-stats-individual-stat...

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birdmanjeremy 2513 days ago
I would bet you most of those people are paying a lower tax rate than I am, as they're smart enough (and have the means) to shift most of their earnings to capital gains and take advantage of other tax avoidance strategies.
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paulsutter 2513 days ago
"Those people" are usually folks with a onetime windfall. For example a startup employee with options not stock. And I don't see what bearing that has on the top rate.
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birdmanjeremy 2513 days ago
Most people who's earnings are over $1mm a year are spending significant time & resources planning their tax strategy and are not paying 50% effective tax rates.

Source: Trump's tax returns.

Actual source: https://www.nytimes.com/2011/08/15/opinion/stop-coddling-the...

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shadowprofile77 2512 days ago
Stop coddling the rich? The top 20% of earners in the U.S pay a total of 87% of all tax revenue for the government, and their return from that in terms of value of government services relative to taxes paid is much smaller than it is for those in lower brackets. There are many wealthy people who use numerous legal (and in some cases illegal) means to avoid "their fair share" but overall, the numbers show that they pay far more than what most people would call fair in any other context.

One source (there are many others with like 20 seconds of google searching): https://www.wsj.com/articles/top-20-of-americans-will-pay-87...

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