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Comment by paulsutter | Hacker News Reader

While you obviously have an above average income, there really are people that pay very close to the marginal rate ($10M income etc). Asymptotically, the marginal rate is the top rate.

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For those curious, IRS reported that in 2016, just over 16,000 people in the U.S. reported an adjusted gross income of $10 million or more.

555 of them took the standard deduction instead of itemizing!

Interesting. Where did you come across that stat?

IRS provides statistics about federal taxes:

https://www.irs.gov/statistics/soi-tax-stats-individual-stat...

I would bet you most of those people are paying a lower tax rate than I am, as they're smart enough (and have the means) to shift most of their earnings to capital gains and take advantage of other tax avoidance strategies.

"Those people" are usually folks with a onetime windfall. For example a startup employee with options not stock. And I don't see what bearing that has on the top rate.

Most people who's earnings are over $1mm a year are spending significant time & resources planning their tax strategy and are not paying 50% effective tax rates.

Source: Trump's tax returns.

Actual source: https://www.nytimes.com/2011/08/15/opinion/stop-coddling-the...

Stop coddling the rich? The top 20% of earners in the U.S pay a total of 87% of all tax revenue for the government, and their return from that in terms of value of government services relative to taxes paid is much smaller than it is for those in lower brackets. There are many wealthy people who use numerous legal (and in some cases illegal) means to avoid "their fair share" but overall, the numbers show that they pay far more than what most people would call fair in any other context.

One source (there are many others with like 20 seconds of google searching): https://www.wsj.com/articles/top-20-of-americans-will-pay-87...

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