Always feels weird when someone in the top 1% of earners, making over $500k/yr, complains about taxes.
Since it's unearned income, you don't have to pay payroll taxes.
And you can also avoid paying capital gains tax on the first $250k in capital gains on a property (after 1 year).
There are a lot of people in speculative markets that pay close to 0 tax in real estate.
Also note that the nice round figures OP provides are slightly over the top. In 2021, someone earning $1M would pay an effective 33% tax rate, or about $334K. That’s $66K below their stated $400K.
The poverty line for a family of 4 is just over $20K. So their rounding error is nearly 3 times the poverty line for a couple with two kids. Their net take home every year is an absolutely staggering and life changing amount of money for anyone who hasn’t spent years climbing the sociopathic career ladder at a tier 1 tech outfit.
Top 1%? Paying their share of taxes? Ha ha ha.