Unfortunately, these myths about low effective rates are rather difficult to shake.

But they are just that, myths.

1) Passive income (wealth income) is taxed as regular income. There is actually an extra 3.8% federal tax on passive income. You were probably thinking of capital gains in your reference, but cap gains aren't income. It's investment.

2) The low effective rates frequently cited for corporate income are well known to be false. For a primer: http://tax.org/TAXCOM/TAXBLOG.NSF/PERMALINK/MSUN-99DKXS?OPEN...

3) If the wealthy could live in Switzerland for a few months every year and pay 20% on their international investments, like every other wealthy person in the world, I think that they would quite like that option!