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Big Tax Drop for Ultra-Wealthy

April 18, 2011

The super-rich are paying a far lower rate of taxes these days than they did in the early 90s.

The average federal income tax rate for the 400 highest adjusted gross incomes was 17 percent in 2007, compared to 26 percent in 1992, according to IRS figures cited by the Associated Press. The average taxpayer saw a drop over the same period of a far smaller percentage, down from 9.9 to 9.3 percent.

Meanwhile, about 45 to 47 percent of U.S. households pay no federal income taxes whatsoever, according to the Tax Policy Center, thanks to a multitude of tax breaks. As politicians in Washington jockey for advantage in the tax reform effort, we can expect to see some major changes in tax policy.

Comments (1)
"The Donald" has the right idea -- use a one-time excise tax on these people to eliminate the Federal deficit!
Posted by HWilsonCPA | Monday, April 18 2011 at 2:21PM ET
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