What percentage of their income do the rich really pay in taxes?

[techs]

One thing that I haven't seen in the debate on tax rates is how much do the rich really pay as a percentage of their income?

I know that Romney paid 13.9 percent, despite the putative 30 percent plus the law says someone who earned what he did would pay. What is the average of people who earned what he does?

Is this info available? If not, why?

One of the things that interests me is if Romney paid 13.9 percent and that is average or above average for what someone pays who earns what he does, is that Romney's proposed 4 percent reduction of the top rate would bring him down to 9.9 percent. Thats a whopping 30 percent decrease in his taxes.

 

[Throckmorton]

I'm guessing most of his tax is capital gains. I don't know how he got below that 15% though.

 

[lotus503]

One thing that I haven't seen in the debate on tax rates is how much do the rich really pay as a percentage of their income?

I know that Romney paid 13.9 percent, despite the putative 30 percent plus the law says someone who earned what he did would pay. What is the average of people who earned what he does?

Is this info available? If not, why?

One of the things that interests me is if Romney paid 13.9 percent and that is average or above average for what someone pays who earns what he does, is that Romney's proposed 4 percent reduction of the top rate would bring him down to 9.9 percent. Thats a whopping 30 percent decrease in his taxes.

Less than I pay

 

[piasabird]

Charitable contributions? He donates lots of money every year.

A lot of wealthy individual donat millions to various causes. Mormons in good standing may a tithe which is 10% of gross pay/increase. Plus Mormons have a tradition of donating money for welfare for the poor on the first sunday every month. Plus he probably feels he can donate more than that for a few choice causes. Paul in the new testament wrote that it would go well for those that are found with compassion in the last days. It is one thing to put a sticker on your car that says you support a cause and it is another thing to put your own money where your mouth is.

It is the tax money of the rich that go to building the roads. If anything it is in spite of the government that people succeed.

 

[Jhhnn]

Charitable contributions come off the front end, reducing taxable income. That doesn't explain a 13.9% tax rate on the remainder.

 

[MonkeyK]

Actually it does. The charitable contributions are itemized and deducted from your adjusted gross income.
you can check it out on a 1040
http://www.irs.gov/pub/irs-pdf/f1040.pdf

 

[glenn1]

I'm guessing most of his tax is capital gains. I don't know how he got below that 15% though.

Exactly, and capital gains are taxed at a preferential rate because the principal was already taxed once as income at the nominal rates, and the earnings are not indexed for inflation when taxed.

 

[MonkeyK]

Exactly, and capital gains are taxed at a preferential rate because the principal was already taxed once as income at the nominal rates, and the earnings are not indexed for inflation when taxed.

That's not why. Capital gains is taxed lower with the hope that it provides incentives for people to fund business ventures.

 

[glenn1]

That's not why. Capital gains is taxed lower with the hope that it provides incentives for people to fund business ventures.

Sure, that's another reason but that doesn't exclude the reasons I cited. Indeed there are even more reasons than the ones we cited; for example promotion of home ownership via exclusion of the first $250k (or $500k for married couples) of capital gains from sale of your primary residence when meeting certain criteria.

 

[Matt1970]

 

[MonkeyK]

Doh. Nm

 

[Jhhnn]

Actually it does. The charitable contributions are itemized and deducted from your adjusted gross income.
you can check it out on a 1040
http://www.irs.gov/pub/irs-pdf/f1040.pdf

Gawd. Charitable contributions are subtracted on line 40, taken from Schedule A. Taxes are paid on the *Taxable income* on line 43, minus whatever credits the filer can come up with.

If Mitt gives away 10% of $2.4M/yr, his taxable income is reduced by that amount. He paid 13.9% on his *taxable income*.

 

[Jhhnn]

Obfuscations & excuses aside, LTCG's are taxed at a lower rate to favor the wealthy, with a small % of the upper middle class getting some of the crumbs.

That's what really happens.

 

[zephyrprime]

Exactly, and capital gains are taxed at a preferential rate because the principal was already taxed once as income at the nominal rates, and the earnings are not indexed for inflation when taxed.

Principal isn't taxed at all.

 

[CaptainGoodnight]

You know, when you increase government involvement in business, you see an increase in tax loopholes. Just saying.

 

[simpletron]

Gawd. Charitable contributions are subtracted on line 40, taken from Schedule A. Taxes are paid on the *Taxable income* on line 43, minus whatever credits the filer can come up with.

If Mitt gives away 10% of $2.4M/yr, his taxable income is reduced by that amount. He paid 13.9% on his *taxable income*.

The 13.9% for mitt rommey is based on AGI(line 37). http://www.boston.com/news/politics/2012/president/candidates/romney/romney_tax_return_1040_2010/

 

[simpletron]

One thing that I haven't seen in the debate on tax rates is how much do the rich really pay as a percentage of their income?

I know that Romney paid 13.9 percent, despite the putative 30 percent plus the law says someone who earned what he did would pay. What is the average of people who earned what he does?

Is this info available? If not, why?

some good information for the top 1%.
http://cbo.gov/publication/43373

In 2009, The average rate for those with AGI of 10 million or more(rommey's group) was 22.6%.
http://www.irs.gov/taxstats/indtaxstats/article/0,,id=96981,00.html

 

[Genx87]

One thing that I haven't seen in the debate on tax rates is how much do the rich really pay as a percentage of their income?

I know that Romney paid 13.9 percent, despite the putative 30 percent plus the law says someone who earned what he did would pay. What is the average of people who earned what he does?

Is this info available? If not, why?

One of the things that interests me is if Romney paid 13.9 percent and that is average or above average for what someone pays who earns what he does, is that Romney's proposed 4 percent reduction of the top rate would bring him down to 9.9 percent. Thats a whopping 30 percent decrease in his taxes.

I am sure you were here in 04 whining about John Kerrys 11.8% income rate.

 

[EagleKeeper]

Capital Gains is taxed less.

Municipal/government Bond income is not taxed at all.

Both are good for the economy.

Until you realize where the income comes from; you will not understanding the top rate reduction issue.

by thiinking that the 15% will go to 11% shows the serious flaws in your understanding of taxes and types of income

 

[the DRIZZLE]

Can we have a ban on posting this study? It includes SS and Medicare taxes which makes no sense. If SS is a tax the you have to consider SS payments to be welfare to be internally consistent.

 

[fskimospy]

Can we have a ban on posting this study? It includes SS and Medicare taxes which makes no sense. If SS is a tax the you have to consider SS payments to be welfare to be internally consistent.

No you don't.

That would be true if the payment of payroll taxes created an enforceable obligation for the government to pay you Social Security, but it doesn't.

 

[fskimospy]

I am sure you were here in 04 whining about John Kerrys 11.8% income rate.

Why would he? John Kerry's platform fundamentally included raising his own tax rate.

The reason why Mitt's low tax rates are so offensive is that ol' Mittens wants to lower his even further.

 

[MiniDoom]

you're doing it wrong. I payed 4% and not anywhere near rich. it should be even less this year.

 

[pcgeek11]

One thing that I haven't seen in the debate on tax rates is how much do the rich really pay as a percentage of their income?

I know that Romney paid 13.9 percent, despite the putative 30 percent plus the law says someone who earned what he did would pay. What is the average of people who earned what he does?

Is this info available? If not, why?

One of the things that interests me is if Romney paid 13.9 percent and that is average or above average for what someone pays who earns what he does, is that Romney's proposed 4 percent reduction of the top rate would bring him down to 9.9 percent. Thats a whopping 30 percent decrease in his taxes.

If he is doing anything illegal, lock his ass up. If he isn't doing anything illegal well too fucking bad. If you don't like the law ... work to change it.

Is he doing it illegally?

 

[pcgeek11]

Principal isn't taxed at all.

the principal was already taxed once as income at the nominal rates,