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[quote=Anonymous][quote=Anonymous]We do well. I am not complaining and feel very fortunate to have two very good paying careers. But we just did our end of year tax analysis with our CPA and our effective tax rate when adding federal plus DC taxes is 45% (36% federal, 9% DC and DC is only "low" because a lot of our income is through a DC C-Corp which is taxes slightly lower at 8.5%).

45% of our income going to taxes. Nearly half of what we take home.  And yes -- we are utilizing every single tax strategy under the sun available to us and work with a very good CPA.

So let's change the complaint from "tax the rich" to "tax the billionaires" because the regular rich are playing PLENTY in taxes already. Sigh.  [/quote]

You're doing *very* well considering the highest federal income tax bracket is 37%, and that only starts above $731,200.

It sounds like you're self-employed through the S corp, and I'm guessing you're counting the Social Security and Medicare taxes the S Corp pays. Effectively everyone pays these higher rates- it's just that much of it is visible on the employer's taxes rather than the individual's.

Even then, getting to an effective 37% rate requires some pretty extraordinary income. It wouldn't surprise me if you're into a seven-figure income- perhaps well into it.

You don't seem to have a lot deductions You're probably rich enough to either own your house outright, or that it is so expensive that the mortgage interest deduction barely applies to you.

It wouldn't surprise me if you have, but are excluding, capital gains from your effective tax rate calculation. Even if that didn't apply this year, over your lifetime you probably receive huge tax advantages through the lower capital gains rate. And you and/or your children will probably benefit greatly from the ridiculously high exclusion on estate taxes.

The tax system is stacked heavily on your favor. Perhaps not as much as the uber wealthy, but rich people like you still do quite well under it.[/quote]

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