[thrwhizzle]

>What do you think is a reasonable effective income tax rate? (Please do not confuse effective and nominal tax rates!) In my view: "All in" should be about 50-55%. When I say "all in" I mean absolutely everything -- federal, state, local, national pension, national health (if applicable), yada yada yada.

Who is this for? The “rich” or for everyone else?

An effective rate of 50-55% is obscene. I would relocate for anything approaching 40%.

[onlyrealcuzzo]

Where do you live?

In California - if you don't have a ton of mortgage interest deductions and you count state income tax - you're above 39.5% on $400k. If you count both sides of payroll tax, you're in the mid 40s. And even if you own a home, if you count property tax, you could be close to or above 50%.

The median state income tax is about half of California's at $400k - and property taxes here are somewhat low. Most places - you're gonna be above 40%.

[throwaway2037]

If unclear, the "reasonable effective income tax rate" was for the top 1%.

1) Where do you live?

2) Are you in the top 1%?

3) In your location, what is the effective income tax rate for top 1%?

[thrwhizzle]

Texas.

That would depend on how you classify 1%.

The effective tax rate for an individual earning $400k would be around 31%.

Like I said, even approaching 40% is obscene. 50-55% is absolute thievery. I would relocate from Texas if my effective tax was even close to 40%.