Super rich see federal taxes drop dramatically (down 35% since 1992)

[Bill USA]

http://news.yahoo.com/s/ap/us_no_taxes

The Internal Revenue Service tracks the tax returns with the 400 highest adjusted gross incomes each year. The average income on those returns in 2007, the latest year for IRS data, was nearly $345 million. Their average federal income tax rate was 17 percent, down from 26 percent in 1992.

Over the same period, the average federal income tax rate for all taxpayers declined to 9.3 percent from 9.9 percent.

The top income tax rate is 35 percent, so how can people who make so much pay so little in taxes? The nation's tax laws are packed with breaks for people at every income level. There are breaks for having children, paying a mortgage, going to college, and even for paying other taxes. Plus, the top rate on capital gains is only 15 percent.


There are so many breaks that 45 percent of U.S. households will pay no federal income tax for 2010, according to estimates by the Tax Policy Center, a Washington think tank.
(more)

Note: in going from 26% rate to a 17% rate that is a 35% reduction.

Going from 9.9% to 9.3% is a 9% reduction. This is what Republicans mean by a tax cut. The top categories get reductions of about 4 times greater than the bulk of the population.

This is how you produce an economy with lousy growth and low job creation and higher unemployment.

[snagglepuss]

1. K & R nt