- Mar 17, 2015
- 17,204
- 9,207
- Country
- United States
- Faith
- Christian
- Marital Status
- Married
If you are interested in what in what I'm talking about, See summary below, or else recall (and go back to the first post I made to you and read the link to get more). If interested. It's ok if not.Guess wrong? The 1% are not the “ultra rich” that “live on capital gains”? On what planet? Not earth.
The ultra rich are more like the 0.01% and up and they aren't employed typically (though can be nominally), and instead of what we think of as employment income they instead have capital gains, see. And that's just the simplified nutshell. Then gets more complicated from there.
So the giant majority of their federal taxes aren't in the 37% top income bracket generally.
Got that?
They might have some trivial amount of ordinary income in that 37% bracket, but 99% of their real gain is capital gains typically, taxed at a far lower rate.
They pay federal tax rates which depending on convenient offsetting losses, will be up to a possible maximum rate of 20% on those gigantic capital gains.
(Almost none of their income is on that the 37% bracket. see?)
In practice their federal tax effective rates will be numbers like 14% or 17%, to use a real life example.
You could read the link in the first post i wrote to you...
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