Reply to Where are all the high income folks?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]So what's your effective tax rate, PP?

You are clearly an exception re:income - according to a quick search, there are less than 20k Americans who have an AGI of over $2mm annually. And relatively speaking, you still haven't accumulated *that* much wealth based on your net assets (that's a lot of debt).

I worked in PWM with global 1%-ers, family offices, the whole shabang, and most of the time we were talking $100m+ in net assets. Though clearly you've done incredibly well for yourself and that's nothing to sneeze at...

You're still wrong, though. High income (if we're talking millions) can go along with high wealth, sure, but more often than not, if the wealth is very substantial then you're talking low income taxes based on low earned income. That's why people are talking about introducing a wealth tax instead of income tax.

Piketty explains this concept well: https://en.wikipedia.org/wiki/Capital_in_the_Twenty-First_Century
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Agreed.  It's virtually impossible to attain a net worth that qualifies for PWM purely through salary & bonus income.  Perhaps the only people who can are celebrity entertainers & athletes.  For everyone else it comes through a business, whether it's owning real estate or a company, early start-up employee, owning a patent/inventor, stock options/grants, carried interest, partner in a business or firm, etc.[/quote]

This is true. DH earns about $2m per year, mostly in bonus that is on his w2. We get taxed at the highest rate. We are savers but we will never be high net worth. We don’t come from family money. We live a very good lifestyle and we will be able to retire but we will never be rich.[/quote]

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