It is often said that the rich are getting richer. New data indicate that the really really rich have become much much wealthier. According to recently released data from the Internal Revenue Service, total income reported on the top 400 tax returns rose 20 percent in 2014.
To be in the top 400 club, one would have had to earn around $127 million in adjusted gross income. That group of 400 represents a tiny percentage of the 150 million tax returns generated in 2014, but still managed to receive 1.3 percent of total income and 10 percent of all capital gains.
The same 400 households also made nearly 7 percent of all charitable contributions. This group paid a bit more than 2 percent of all income taxes and were associated with an average federal tax rate of roughly 23 percent. That average federal tax rate was the highest since 1997 when Congress cut capital gains taxes.
As indicated by the Wall Street Journal, individuals on the top 400 list change from year to year. Future IRS reports will focus on the top 0.001 percent, which in 2014 encompassed about 1400 households.
