For top 400 Americans, combined income of $105 billion in 2006

[dcsmart]

Statistics recently released by the Internal Revenue Service (IRS), the federal tax authority in the US, show that in the year prior to the emergence of the financial crisis a tiny share of the population enriched itself enormously.

In only one year, 2006, the income of the top 400 Americans—who comprise about .0001% of the population—stood at more than $105 billion, or $263 million a head. To join this exclusive club, individuals had to take home a minimum of $111 million.

Less than one fifth of the financial aristocracy’s income went in tax payments to the IRS: $18 billion cumulatively, or $45 million per head.

The proportion of their total income the rich paid in taxes, just 17%, was the lowest since the IRS began to collect similar data 18 years ago. It is also well below the tax rate of most working class families, according to Robert S. McIntyre, the director of Citizens for Tax Justice.

The rest of the population paid a combined $1 trillion in federal income taxes. In other words, the top 400 earners paid slightly less than 1.8% of total federal income tax revenue.

Since 1996, the top 400 earners have doubled their share of the national income. In 2005, they took home an average of $214 million, about $50 million less than the $263 million average of 2006. In 1996, the top 400 declared earnings of “only” $74 million.

The richest 400 wrote off just over half of their tax liability through charitable contributions. However, these write-offs accounted for just 5% of all tax deductions for charities. In other words, charities depend overwhelmingly on contributions made from outside the ranks of the financial aristocracy.

The incomes of the wealthy elite have been further sheltered from taxation by revisions to the tax code related to capital gains, or profits earned on the resale of financial assets. The capital gains tax rate has fallen from 28% in 1997 to 15% today. The vast majority of the elite’s taxable income came from capital gains, about two thirds, while only 7.4% was based on salaries.

The amount of money taken home by the top 400 earners in 2006, $105 billion, is a staggering figure. By comparison, in his “stimulus” package, President Obama has requested only $40 billion for infrastructure improvements related to roads, transit, and rail, or about 38% of the income in one year for 400 fabulously wealthy Americans.
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FULL ARTICLE
http://www.wsws.org/articles/2009/feb2009/us4c-f02.shtml

SEE LINKS TO MORE INFO WITHIN ABOVE ARTICLE.

[liberal N proud]

1. Their buddies in Congress want to give them more tax cuts

:mad: :grr: :nuke:

:mad: :grr: :nuke:

:mad: :grr: :nuke:


:mad: :grr: :nuke:


:mad: :grr: :nuke:



:grr:

[dcsmart]

2. I like the elephant picture, cool....N/T