high income tax returns...
http://www.irs.gov/pub/irs-soi/14insprbulhignincome.pdf"...the past four years have seen an explosion of high-end tax avoidance: in each of these years, the number of zero-tax Americans found in this report has exceeded 30,000.
In 2011 (the latest year for which data are available), almost 33,000 people with incomes over $200,000 paid no federal income tax. For this groupless than one percent of all Americans with incomes over $200,000 in 2011tax-exempt bond interest and itemized deductions are among the main tax breaks that make this tax-avoiding feat possible..."
http://www.irs.gov/uac/SOI-Tax-Stats-SOI-Bulletin-Spring-2014
Leme
(1,092 posts)Igel
(35,307 posts)There's tax-exempt bonds. You get lower interest because you're loaning to the government. State, federal, local.
There are the usual exemptions and deductions. They're mostly not means tested.
Then there's what is stated in the OP but overlooked by readers. It's US federal income tax that they aren't paying. A lot of those tax returns shown tax payments to other governments. If you pay elsewhere, there's often a credit against payment. Interesting means of tax-avoidance--paying taxes. (Then again, I don't know of anybody who doesn't engage in tax avoidance. I certainly do. I take various deductions that are option. Standard deduction for me and dependents. Child care deduction. The $1000 deduction for my kid. All of these are designed to help me avoid paying taxes. All are optional. If all tax avoidance is bad, then I guess all DUers should avoid deductions from income, income taxes and reject refundable tax credits.)