[triceratops]

What percent of all income do they make?

Edit: it's an honest question. Maybe the top 1% paying 40% of all income taxes is too much tax. Maybe it's not enough. Without knowing how much of all the income they make it's a meaningless number.

[crmd]

According to the Tax Foundation[1], for tax year 2021, the top 1% of U.S. earners—those with an adjusted gross income (AGI) of $682,577 or more—accounted for 26.3% of total AGI and paid 45.8% of all federal income taxes.

My personal opinion is that income tax should be more progressive, but I know that plenty of smart people disagree on that.

[1] https://taxfoundation.org/data/all/federal/latest-federal-in...

[killjoywashere]

Your source leans right-center, so probably good reason to suspect their reported top 1% AGI is low and their reported federal income tax estimate is high.

https://mediabiasfactcheck.com/tax-foundation/

[refurb]

It’s IRS data. You can download it from the IRS website and replicate the analysis and prove them wrong if you’d like.

[hnburnsy]

https://fee.org/articles/5-reasons-to-avoid-ad-hominem-argum...

[tbrownaw]

1. Does not follow. Just because you don't like someone's politics doesn't mean they're dishonest.

2. Your own link contradicts you. It says explicitly that that site hasn't failed any of their fact checks and doesn't use loaded words that they say are typical of that category. It says the categorization is because the site promotes libertarian policies.

[wat10000]

There are a lot more taxes than the federal income tax. It happens to be one of the most progressive taxes. Anyone focusing on that and ignoring all the others is trying to scam you.

[crmd]

This is true for ultra high net worth individuals. They can do schemes like borrowing against equities and using the tax-free cash for expenses or purchasing other assets.

It is also true for many “normal” one percenters. For example there is a service for incorporated anesthesiologists where you tell them where you plan to go on vacation and what dates, and they create a bullshit anesthesiology conference, including the brochure and other artifacts, that meet the letter of the law IRS definitions for a valid business expense. None of this stuff ever hits AGI.

[wat10000]

A simpler example: social security taxes hit a cap at a bit under $200,000/year. Somebody working fast food at minimum wage is paying 6.2% on every dollar they earn, while with my fancy tech job I’m paying a substantially lower percentage.

[coffeecat]

The social security "tax" should really be conceptualized as an investment, not a tax. The typical fast food worker has probably not passed the first bend point in the Social Security PIA formula, meaning that social security is giving them 90 cents on the dollar*. You, with your fancy tech job, are likely well past the second bend point: social security is only giving you 15 cents on the dollar* (and nothing, obviously, for earnings beyond the payroll tax ceiling).

It's a progressive system overall - but it wasn't designed for the purpose of wealth redistribution, hence the payroll tax ceiling.

* More precisely, their monthly benefit at full retirement age increases by 90 cents for each additional dollar of pre-retirement average monthly earnings, whereas yours only increases by 15 cents.

[nkurz]

That's wild. I searched, though, and this is the closest I found: https://www.cerebraltaxadvisors.com/blog/vacation-business-t.... Is there a link you could share for the actual fake conference approach?

[WalterBright]

> This is true for ultra high net worth individuals.

Anyone can borrow money against their stocks, house, or credit card. It's tax-free as well.

> They can do schemes like borrowing against equities and using the tax-free cash for expenses or purchasing other assets.

Um, borrowing money is not "income". You have to pay it back, with interest.

[triceratops]

If the asset appreciates faster than the interest rate there's never a need to sell. If the interest rate is lower than the capital gains tax rate, paying the interest is cheaper than paying taxes.

UHNW individuals can borrow until they die. Their assets pass to their heirs with a stepped up cost basis. The heirs can liquidate whatever's needed to pay off the loan and incur no tax.

Normal people can't do this. If I die owing money, my creditors will take it out of my estate before it passes to my heirs. UHNW estates can be structured differently and creditors can accommodate different payment terms (get paid second) because they know the money's there, and it saves taxes.

You can also read: https://www.reddit.com/r/BuyBorrowDieExplained/comments/1f26...

I might have gotten some things wrong. Or maybe the poster has.

[WalterBright]

> Their assets pass to their heirs with a stepped up cost basis

LOL, the stepped up basis gets hit with the inheritance tax.

> The heirs can liquidate whatever's needed to pay off the loan and incur no tax.

The loan and the interest payments and dont forget the inheritance tax.

> Normal people can't do this.

Yes, they can borrow money, die, the inheritors pay off the loan with the stocks, and then pay estate tax.

[rayiner]

20%. https://ourworldindata.org/grapher/income-share-top-1-before...