Effective Tax Rates
More than one quarter of the top 400 taxpayers, or 112 filers, had an effective tax rate of between 15% and 20%, according to the IRS. Another 101 paid effective rates between 10% and 15%, while 30 had effective rates of zero to 10%. There were 59 taxpayers in the top brackets from 30% to 35%.
The IRS data also illustrates the compensation breakdown of the highest earners. Salaries and wages comprised more than a quarter of their adjusted gross income in 1992 and just 8.18% in 2008.
During the same period, capital gains reported for this group rose from 36% of adjusted gross income to 56.8%. Most of these gains are taxed at a 15% rate. Obama's deficit reduction panel last year recommended taxing capital gains and dividends as ordinary income as a way to raise revenue and cut income tax rates.
Capital gains income fell 32.8% between 2007 and 2008 to $61.5 billion.
The IRS data also shows a change in composition of the top 400 earners. Just four taxpayers, whom the IRS didn't identify, have been included in the top 400 each year since 1992.