Wednesday, December 09, 2009

Taxes on millionaires continue to fall

Martin Sullivan of reports that, based on IRS data, net income tax rates for millionaires in the US have fallen over the last 10 years; in 2007, they were at 22.1%. This data does not include the effect of state and local taxes, although it does include capital gains and dividend taxes (the reduced rates for these probably drove a large proportion of the fall in tax rates).

However, Catherine Rampell indicates on the NYT Economix blog that the very rich actually pay less in taxes than the rich. This is likely due to the low capital gains and dividend taxes and it needs to be rectified.

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