Hamburglar
02-26-2010, 10:49 AM
President Obama has reinstated the tracking of the top 400 income earners in America. I think this is interesting, and goes along the lines of something he proposed in the campaign-of setting a "wealthy line" like the poverty line. Here is an interesting article if you haven't heard about this measurement.
The top 400 taxpayers — 3 out of every 1 million filers — enjoyed even larger gains in pre-tax incomes. Between 1992 and 2007, their average adjusted gross income increased by over 400 percent, after adjusting for inflation: from $68 million to $345 million (in 2007 dollars). Their incomes grew rapidly between 1995 and 2000, dropped during the 2001 recession, then rose rapidly again from 2002 to 2007.
Because of the steep reduction in effective tax rates for the top 400 households, their after-tax incomes grew even faster than their pre-tax incomes. Between 1992 and 2007, their average income after federal income taxes increased by 475 percent.
Although the 2007 data reflect the height of the last economic expansion, effective tax rates on the richest 400 taxpayers will likely remain very low after the current recession, largely because the portion of its overall income this group derives from capital gains has remained relatively constant over the past decade. In the last recession, this figure dropped from 64 percent in 2000 to 55 percent in 2002, before climbing again amidst further capital gains tax cuts and a strong stock market. If the markets rebound and preferential capital gains tax rates are extended, the very highest-income filers will continue to enjoy very low effective tax rates into the future, even as budget deficits become a more serious problem.
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The top 400 taxpayers — 3 out of every 1 million filers — enjoyed even larger gains in pre-tax incomes. Between 1992 and 2007, their average adjusted gross income increased by over 400 percent, after adjusting for inflation: from $68 million to $345 million (in 2007 dollars). Their incomes grew rapidly between 1995 and 2000, dropped during the 2001 recession, then rose rapidly again from 2002 to 2007.
Because of the steep reduction in effective tax rates for the top 400 households, their after-tax incomes grew even faster than their pre-tax incomes. Between 1992 and 2007, their average income after federal income taxes increased by 475 percent.
Although the 2007 data reflect the height of the last economic expansion, effective tax rates on the richest 400 taxpayers will likely remain very low after the current recession, largely because the portion of its overall income this group derives from capital gains has remained relatively constant over the past decade. In the last recession, this figure dropped from 64 percent in 2000 to 55 percent in 2002, before climbing again amidst further capital gains tax cuts and a strong stock market. If the markets rebound and preferential capital gains tax rates are extended, the very highest-income filers will continue to enjoy very low effective tax rates into the future, even as budget deficits become a more serious problem.
To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts. et+and+Policy+Priorities%29&utm_content=My+Yahoo