Forbes mag "Rich cheat More on taxes"

A new study based on unpublished Internal Revenue Service data shows the rich are different when it comes to paying taxes: They hide more of their income.

The previously unreported study estimates that taxpayers whose true income was between $500,000 and $1 million a year understated their adjusted gross incomes by 21% overall in 2001, compared to an 8% underreporting rate for those earning $50,000 to $100,000 and even lower rates for those earning less. (The "net misreporting rate" as the IRS calls it, includes both underreported income and inflated deductions.)


More here;
http://www.forbes.com/2008/10/21/taxes-irs-wealth-biz-beltway-cz_jn_1021beltway.html


This should come as no surprise to anyone concerned with tax justice. It will likely be a big surprise to your red neck brother-in-law who thinks that sucking up to the rich may convince them to let him in on the riches.

Thanks for posting this. As you point out, it's no surprise, though it's nice to see it documented.

K/R

I am very curious as to where the $250K/$200K/$150K line is drawn

http://www.taxfoundation.org/blog/show/341.html

Top1% Top 5% Top10% Top25% Top50% Bottom50%

Percent of Income Taxes 33.7 54.1 65.8 83.6 96.4 3.6
Percent of Income 16.5 31.0 42.1 64.7 86.1 13.9

With the wealthiest 1 percent of taxpayers paying roughly 33.7 percent of income taxes and earn just 16.5 percent of income, it's hard to argue they're not paying a fair share by any reasonable definition of "fair."

why not freeze taxes and spending all together...this line about investing is always a lie regardless of who it comes from

I will respond further later but the "tax foundation" lies with statistics.
(1) the rich have a far larger share of income.
(2) those lying stats include only federal income tax, the most progressive tax, and not all the other taxes regular people pay far higher percentages of like payroll taxes.
Regular people pay 15% on all their income for the top 1/10 1% they pay less then 1% of their income in payroll taxes since cap gains and dividends are not subject ot it. Nor is any regular income over $12K

Those poor little rich people made to pay income taxes. Whaaaa! If only they could be like the lucky duck poors and not earn enough income to pay taxes!

at the profit-bots he spawned? Oh, that's rich.

but if I can legally cheat on my taxes, 'nuff said.

D'oh!

of claiming money, just as there are of hiding it. You might ask: Why would you claim money you didn't actually earn? There are reasons for everything.

then wage income.It is easier to over claim business expenses then mortgage expenses.

of the wealthy have their own businesses or professional service corps. There are many more opportunities to fudge things on these (as well as stock and dividend income) than on W-2 income.

Sad.

Apparently it's perfectly legal. Did no one read this article?

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x46457

We'll see.

after the lunatics have been running the asylum for 7 years.

the sun rose in the east today

water is wet:eyes:

its also true that the laws are so much more complicated if you're rich. sometimes its hard to know exactly whats what. it seems like the reporters in this article may be stretching some of these facts a little bit to make their story fit

-dailydave

eom

21$ of the midpoint of that range (750k) is $157,500 - that's how much income this group is hiding on average.

Since they should be in the 35% bracket, add about 5% for state, they're avoiding over $60K/year of tax (and that itself is like tax-free take home for them).

Wow.