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Where did the myth start that Millionaires don't pay taxes?

According to new data from the IRS, people who make $1 million or more had an average tax rate of 20.4 percent in 2010. Tax filers who earned $30,000 to $50,000 paid an average rate of 4.8 percent, while those who made between $50,000 and $100,000 paid 7.7 percent. Those making under $30,000 had a negative effective rate, meaning they paid no federal income taxes after deductions and credits.

Put another way, millionaires pay a rate that's more than four times that of the middle class.

http://www.cnbc.com/id/49939444?__source=yahoo|lan...

Update:

My payroll tax rate is around 30%

Update 2:

"After that it starts to go down, and falls to 20.7 percent for those making $10 million or more."

Higher than than the 50K-100K guys are paying.

15 Answers

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  • ?
    Lv 6
    8 years ago
    Favorite Answer

    From your own source:

    One caveat: Rates go up as income goes up — but only to a point. Once you hit a certain magic number among super-high earners, your tax rates start to fall slightly.

    According to the IRS, average tax rates increase as income increases — until you get to around $1.5 million in annual income. Once you make $2 million, average tax rates start to decrease.

    ...

    The point has always been simple.

    It's not a question of "do they?" But rather, a question of, why should their rates fall if they get richer, but the middle are punished for their upward mobility?

    They can pay more, the middle can't, the poor certainly can't, so why aren't they?

  • 8 years ago

    Misconceptions and Realities About Who Pays Taxes

  • 8 years ago

    Perhaps from articles like this one: http://money.cnn.com/2011/05/09/pf/taxes/millionai...

    That rate that is "4X" that of the middle class is only on earned income. That is what they tell you, expecting you to not notice that the majority of their income comes from dividends, interest, and capital gains, which are taxed at the much lower 15% rate.

    Do you just like the taste of shoe polish?

  • Anonymous
    8 years ago

    Average? Mitt doesn’t pay any 20% on the millions he makes each year. We never got to see what he paid, if anything, before 2010. You’re not impressing us with those stats.

    I pay a higher effective tax rate than many millionaires including Mitt and I don’t make a million a year. Some millionaires pay no income taxes and that is a fact. That is no myth.

  • ?
    Lv 6
    8 years ago

    Millionaires pay taxes--the problem is that they don't pay their fair share. Interest and dividends are taxed at only 15%--which even Ronald Reagan would say is absurdly low.

    Your assertion that millionaires pay a higher rate than the middle class is wrong. Poor, working class, and middle class earners all pay 4.2% (soon to be 6.2%) of their incomes in Social Security taxes, but a person with a $1,000,000 of earned income pays only one tenth of that (0.482%).

  • 8 years ago

    "According to new data from the IRS, people who make $1 million or more had an average tax rate of 20.4 percent in 2010."

    First of all, that is an AVERAGE. Which means that many of them are paying a lot less. Secondly, MY tax rate is 28% on my hard-earned money. Does that seem fair to you?

    Those other figures are just ludicrous and unbelievable.

  • DS M
    Lv 6
    8 years ago

    When Obama is talking about the evil rich guys, he is looking at a mirror with his rich supporters behind him. Yes, they did tell us publicly that they weren't paying their fair share of taxes and they don't have the common decency to do what they believe is right.

    As you remember, Senator Obama promised you he would lower the debt to about 6 trillion dollars and then raised the debt to $16,000,000,000,000 for a 10,000,000,000,000 "misjudgment." Obama has proven that his understanding of the economy is worse than a crackhead.

    He is trying to divert the attention away from the fact he is a complete idiot when it comes to the economy and supporting the Black community. Who else, but Obama could allow the Black community to have unemployment twice the national average and not have civil rights leaders grabbing their oxygen bottles and leading a 1950s style march from their golf cart? He knows it is too late for these old dogs to learn a new trick and the race card won't work against him.

    Why do you demand from others that which you don't do yourself?

    With Obamacare,

    We are going to be gifted with a health care plan that we are forced to purchase, and fined if we don't, which reportedly covers 10 million more people without adding a single new doctor, but provides for 16,000 new IRS agents, written by a committee whose chairman doesn't understand it, passed by Congress, that didn't read it, but exempted themselves from it, and signed by a president who smokes, with funding administered by a treasury chief who didn't pay his taxes, for which we will be taxed for four years before any benefits take effect, by a government which has bankrupted Social Security and Medicare, all to be overseen by a surgeon general who is obese and financed by a country that is broke.

    So what the blank could possibly go wrong?" http://www.foxnews.com/politics/2012/10/%E2%80%A6

    Who better than the democrats know why they created their own retirement system instead of using the one they created for us to use? They preach and preach and preach but will never do what they demand from others.

  • ?
    Lv 5
    8 years ago

    This "myth" was perpetuated upon several sightings of rich white men wiping there azzes with $100s by illegal hispanic housekeepers

  • Anonymous
    8 years ago

    Well I think the bigger myth is if we tax millionaires more, we can afford to pay for free health care, increase welfare benefits, solve the Social Security and Medicare insolvancy problem, buy everyone new cars, and pave the streets in gold.

    Fact is, if we taxed everyone earning $100K and above at 100% we could not even meet current government spending for one year. After that, obviously, you would be in big trouble because nobody would invest or work knowing they will not receive a penny of it

  • ?
    Lv 7
    8 years ago

    This class warfare has intensified under Hussein, the closet-socialist maggot.

    In Hawaii he was mentored by Frank Marshell Davis, a commie.

    As Hussein writes in Dreams From My Father,

    "he chose his friends CAREFULLY"....among which were Marxist professors.

    In Chicago he hooked up with Bill Ayers going so far as to having Ayers

    author the above mentioned book.

    With this orientation it's not difficult to understand why Hussein has

    inflamed class warfare...it's in his Marxist blood.

    In my 68 years in America I've never seen things so bad politically.

    Read DECONSTRUCTING OBAMA by Jack Cashill Ph.D. in American Studies,

    he fills in all the details.

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