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Tax Day Watch ’14: The Travails of The 1%

Sure, the top hundredth earned a bunch of extra money, on average, last year. But did you know that they have to hand some of that over to the federal government so it can buy those 47% ciphers healthcare or teachers or some other bullshit? And that next year, after they earn about $330,000 more this year than they did last year, they’ll have to pay even more?

The top 1 percent of earners will pay an average tax bill of $525,231, up more than $36,000 from last year, according to the nonpartisan Tax Policy Center. It will surge to $670,000 for 2014 taxes.

The top 0.1 percent will see even bigger tax bills. That group will have an average tax burden of $2.6 million for 2013 taxes, up from $2.3 million in 2012.

The incomes of the top 1 percent are also going up, of course. The average income of the top 1 percent is expected to rise from $1.67 million in 2013 to just over $2 million in 2014.

But the average tax rate that top earners actually pay is also going up. The average tax rate for the top 1 percent will go from 27.2 percent for 2012 taxes to 31.4 percent for 2013 taxes, and 33.4 percent for 2014 taxes, according to the Tax Policy Center.

Average tax bill for the 1% this year: $525,000 [CNBC]

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13 Responses to “Tax Day Watch ’14: The Travails of The 1%”

  1. Guest says:

    Nice work on the tags, Shaz.

  2. IRS says:

    While this is strictly speaking accurate, the top 1% of all income earners ( as defined by IRS tax returns upon punitive penalty ) begins as low as 383K US$.

    So of the 140 mm IRS returns, one percent, one of every hundred would report income in excess of this figure.

    Silly to blend these, which are heavily concentrated around this number and just above, with the absolute highest reported incomes in the 60-80 mil range most years. Waltons traditionally, Ellison, Buffet etc.

    • English? says:

      Are you having a seizure?

      You took the time to type 3 paragraphs and all we have to show for it is a random collection of tax-themed words.

      I'm not even sure I should tell you to take a lap. Maybe try seeing a doctor, instead.

    • HighFrequencyHater says:

      Somehow every time there's a tax increase on "millionaires and billionaires", everyone making 6 figures gets bent over. I'm sure all my doctor (read:indebted) friends are ecstatic.

      • IRS says:

        I hear you, but that was not really my point. The overall effective rates in this group are actually surprisingly
        narrow.

        Of course living in NY, SF, Boston on 383 K /yr, the lower national threshold for top 1% income earners, probably does seem difficult to those with grad school debt and children etc

  3. Pissed says:

    Notice how Tax Day falls almost as far on the calendar from Election Day as possible.

    -Guy who found out about AMT for the 1st time last night

  4. Frank. says:

    It's siphon, bro.

    -Anyone who can read.