IRS Collections Data for the Top 400 Taxpayers in 2009 has been released and it shows that this select group is earning significantly less than they did in 2008, but they are paying significantly more personal income tax than they did the previous year.
Some notable findings from that report are:
- The cutoff to be in the Top 400 dropped by almost a third.
- The average income for the top 400 dropped by 25%. Can you imagine making 25% less next year, than you made this year?… And that’s before taxes.
- The Top 400 accounted for 20% less of Total Personal Income in 2009, than in 2008. That’s tax that someone else (YOU and I) had to pay.
- The Real Tax Rate for the Top 400 increased by almost 10%, from 2008 to 2009.
The end result is that the Top 400 Taxpayers are earning less, under President Obama, and paying more per dollar earned. But if you think that’s good, then think again.
The reason why the entry level to the Top 400 is going down, is because more than a few of that group have left the USA and others are packing their bags. Some of the tax and spend crowd may say, “Good riddance”, but such a statement would be ill-conceived. You see, the more wealthy people who leave the USA and the jurisdiction of the IRS, the more the rest of us will have to pay.
However, it should be no surprise that they are leaving – at least not if you’ve read “The Rich Don’t Pay Tax! …Or Do They?” The government is punishing success and at the same time, creating an incentive for those who pay the lion’s share of the taxes and who are prolific job creators, to move offshore.
For more information on this new IRS Data, see the article at: