Income Taxes of the Rich and Famous

According to a recent analysis done by our friends at the IRS, based on 2004 tax revenue:

• The top 1% of income tax filers paid 36.9% of all tax dollars, yet they received only 19% of total adjusted gross income (AGI).
  
• The top 5% of income tax filers paid 57% of all tax dollars, and made 33% of AGI.
• The bottom 50% of all filers paid 3.3% of total income tax
• The lowest income earners paid negative tax rates, based on credits, etc.

Wow! Are you incorporating tax avoidance strategy in your finances? Proper mortgage financing is one of the best ways to limit your exposure. Make sure you talk to a professional mortgage planner as a part of your financial picture.

Some more interesting numbers:

• Top 1% of AGI = $328,000 and up
• Top 5% of AGI = $137,000 and up
  
• Top 10% of AGI = $99,100 and up

Don't get caught trying to keep up with neighbor Jones, but it's helpful to know where you land. Good financial planning might help you cross into a new zone next year. Let me know if you need help finding a Financial Planner, CPA, etc.