[spikels]

That's just federal capital gains tax. You also need to consider state taxes. In California you pay ordinary income tax rates on capital gains of up to 13.3% for people with incomes over a million dollars. So the total tax on a capital gain in California can be as high as 37.1%.

[alexeisadeski3]

And likewise with income taxes. The paper cited I the source article accounts only for fed taxes. Cali income tax would toss another 8-10% on top of that 33.x% number.

Low tax America!

Well, I guess it is low tax it you're not rich, haha.

[spikels]

In California the highest marginal total income tax rate is 56.7%. While this is for incomes over a million dollars, if you make around $100,000, you face a marginal tax rate of 52.6%.

I'm sure there are places with even higher marginal taxes but these don't seem low.

BTW - What is really fucked up is the way very poor people face the very highest marginal tax rates due to means testing of various programs (often over 100%) but that's another story.

[aidenn0]

It has been as high as around 90%:

http://en.wikipedia.org/wiki/File:Historical_Mariginal_Tax_R...

[alexeisadeski3]

There were loads of loopholes back then.

And before someone responds with, "there are loopholes now too, har har!": No, there really aren't those kinds of loopholes anymore. The 90% income tax existed in name only, whereas today there actually are people paying ~50% income tax in the US.