According to the IRS, those with adjusted gross incomes of more than $1 million paid an average of 23.3 percent in federal income taxes in 2008; those earning between $100,000 and $200,000 paid 12.7 percent; and those earning between $50,000 and $100,000 paid 8.9 percent. Half of American families don’t make enough money to pay income taxes at all.Wish Gordon's column didn't perpetuate the confusion between people with net worths of $1 million or more and people with incomes of $1 million or more. (Gordon assumes a net-worth of $1 million can generate interest of $50,000 a year. That's far from safe and easy these days.)
In The New York Times, Paul Sullivan discusses Warren Buffett – who is a billionaire, not a millionaire – and his secretary, who clearly makes a lot more than the average executive assistant. Sullivan's description of the president's proposed phase-outs of certain exemptions and deductions suggests they could inflict serious pain, moving people with income exxceeding the 28% bracket into effective rates far higher than 35%.
Oh, well. As Ron Lieber points out, at least some of these poor souls might avoid the AMT.
How to Tell a Billion From a Million
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