The answers to these questions can be extracted from a database rarely used statistics from the IRS income tax. Yields tax file sorting by income and by zip code.
Be wary of releasing any data that might reveal something about individual taxpayers, the IRS slices of its statistics in wide ranges. In this data set the top tier of income is $ 200,000 or more. Except, perhaps, a politician in search of increased revenues; it hardly qualifies a taxpayer as rich.
So I put a finer mesh on the basis of data on zeroing in communities where the average income in all 200K-and-up and is at least 1 million.
The result is a set of 130,400 tax returns of 64 hot spots of prosperity – suburbs, islands, and parts of cities. The list of places luxurious beaches of Fisher Island, an enclave of large yacht owners in Miami at the Tribeca area in Manhattan, where the wage slaves with seven-figure salaries has their chic loft apartments.
Your tax return in this data set if you at least $ 200 000, and you have many millionaires as neighbors. The methodology is developed here.
Ranked by income, the list of places rich begins with Fisher Island, $ 3.2 million per high taxpayers. Then came Purchase, NY at $ 2.2 million, two suburbs of New York City, New Vernon, Alpine, NJ, both at $ 2.1 million, and Atherton, California at $ 1.9 million.
I have done something more with the data that the IRS does not do: net value estimate, using figures on income from dividends, interest and business as starting points.
Estimated net value, the richest five communities are: Fisher Island, $ 57 million by the high back portion; downhill at $ 28 million; Medina, Washington, $ 26 million; Palm Beach, Florida, $ 23 million, and the King Point / Area of?? Great Neck, Long Island, $ 22 million.
Fainting recent market action for damage to the net values, but not as much as one might think. The set-off in this country hold a large number of links, too, and bonds have done well this year.
Most venues are millionaires in California, Florida and New York neighborhood, but there are some in Illinois and Texas.
Taxpayers in my data set does not pay small amount for the government, despite their tax avoidance schemes. The federal tax take from this club is $ 41 dollars, and a quarter of their 164 billion dollars in revenue. This rate of 25 percent is nearly double the rate for the average American to pay at least some federal tax. (And of course, many people do not pay income tax.)
Thus, Warren Buffett is not quite right in implying, citing its own taxes and his secretary, that the rich benefit from tax rates lower than ordinary people. But it is also clear from the data that the rich could chip in more to the U.S. Treasury without cutting too deeply or in their income or bank accounts. Combined net worth of wealthy crowd: $ 1600000000000.
Within this group of 64 rich communities, there is a wide range of tax burdens. In five of them, high-bracket taxpayers can cover all their tax bills, state, local and federal taxes and property taxes, with a quarter of the money coming in.
A quarter to the government
Medina, Washington, where Bill Gates has a beautiful house, is one of five communities where the wealthy upper bracket taxpayers cough no more than 25 percent of income at all levels of government. The other four spots are in Florida, where homes come with boat slips respectable: Fisher Island, Key Largo, Longboat Key and Boca Grande.
At the other end of the tax are the rich people in Bel Air, California, and Short Hills; NJ Their tax bills consume 45 percent or more of income.
There is a wide range, too, in charitable impulses. Donors large live in Medina Key, Longboat and the country on horseback near Charlottesville, Virginia wealthy families in these three areas set aside 5 percent or more of their income to philanthropy.
The cheapskates are concentrated in two locations: New York City and its suburbs and downtown Miami.
NYC suburbs miser tend to be found on the Hudson River. High-income residents of all four cities in New Jersey on the list to 2 percent or less of income. This is remarkable because Average Joes are at 2.9 percent: This is the percent of income given by the 40 million taxpayers whose donations levels are known because they itemize deductions.
New Jersey cities stingy: Rumson, Alpine, Short Hills and New Vernon. The price also includes two club locations in New York: Tribeca and part of White Plains.
Where the rich get their income? Just under half of the cash flow is to work: wages, pensions, social security, and IRA payments. The people in the upper 64 hotspots rich take in 52 percent of their income from property: stocks, bonds, real estate, oil wells and businesses.
For the average American taxpayer, property income is only 17 percent of the pie.
The proportion of property income peaks at 85 percent for Fisher Island. Property accounts for 75 percent or more of income in the two other communities in Florida, Boca Raton and Key Largo, and Charlottesville. It touches the bottom in fast-paced New York. Tribecans only get 25 percent of their investment income.
Tribeca, in other words, is for up-and-comers. Fisher Island is for people who have done long ago and are sitting on fat brokerage accounts.
Residences on Fisher consist mostly luxury condos with very steep maintenance costs. You cannot get on the island except by boat. Mel Gibson and Oprah Winfrey took place there.