The 400 Richest Americans Pay An 18% Tax Rate

Steve Rattner, a Wall Street financier, who just presented these figures on Mornings With Joe, MSNBC. The main reason for the drop in their tax rate of some 40% is the tax cuts by George Bush in 2003, taking the rate paid on dividends and capital gains down to 15%. This reduction in the investment class’s taxes powered the bull market in stocks from the fall of 2003 until the fall of 2007,

The main source of  income as capitol gain. With all those tax cut and Fed stimulating, the stock performance is still under par. Why? Imagine without all those favorable conditions, the stock will tank. 

 Now tax rate will go higher? Will it touch the capital gain and dividend tax rate? the  tax rate on long term capital gains—investments or assets that are held for more than a year—are taxed at 15 percent, compared to the top income tax rate of 35 percent.