Top 400 US Households Pay Lowest Tax Rates Since 2007 – Los Angeles Income Tax Planning & Income Tax Litigation Attorney Bruce Givner

by Bruce Givner on December 9, 2014

According to the latest data released by the Internal Revenue Service (IRS), the top 400 American taxpayers paid an average rate of 18% in 2010, making it the lowest rate paid by top taxpayers since 2007. By comparison, the average rate paid by all taxpayers in 2010 was 11.8%.

The cause for this is fairly obvious. The wealthiest taxpayers earn a majority of their money from capital gains, which are taxed at preferential rates. Because of this, these taxpayers were able to pay effective rates far below the 35% marginal income tax rate in effect that year.

Who makes up the top 400 taxpayers? The minimum adjusted gross income needed to make it into this exclusive group increased 28% since 2009 to $99.1 million. According to the data, these top income households have rebounded from the recession in 2009. Despite the fact that these taxpayers make up less than 0.001% of the US population, they received 1.31% of all adjusted gross income in the US and paid 2.01% of all the income taxes.

Under tax laws in effect during 2010, the top rate on long-term capital gains and dividends was 15%, while the top rate on wage income was 35%.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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