A Look at the Tax Returns of the Top 400 Taxpayers - Real Time Economics - WSJ

The rich lead a life that very few of us could ever possibly imagine. Take, for example, what the IRS called the "top 400" taxpayers in the United States. Here are some interesting facts about them:

* The top 400 earned 1.59% of the nation's household income in 2007, and paid 2.05% of all individual income taxes.
* 220 of them were in the top marginal bracket.
* A taxpayer has to have income of $138.8 million to make the group.
* The group earned $137.9 billion in income, and paid $22.9 billion in federal income taxes.
* 6.5% of that income came from salaries and wages.
* 81.3% of that income came from capital gains, dividends or interest.
* The group paid an average tax rate of 16.6%.

That last number raised my eyebrows. I sometimes hear a lot of kvetching about tax rates and how unfair it is to penalize wealthier Americans. Seems to me that those 400 are doing pretty well if they're only paying 16.6%. I mean, I would LOVE to pay only 16.6%. I'm just sayin'.


A Look at the Tax Returns of the Top 400 Taxpayers - Real Time Economics - WSJ

Is it time for a financial transactions tax?

As part of the potential recovery of bailout funds to banks, many have suggested a financial transactions tax, perhaps 0.05% on every stock sale. The British are now considering it seriously, and Oxfam, a British nonprofit advocacy group, is lobbying furiously to get the so-called "Robin Hood tax" passed (really, is that the best name they could come up with?). The U.S. government won't go anywhere near this, but it's an intriguing idea, as the following ad demonstrates.