Top 400 taxpayers in the U.S. pay a 17 percent tax rate Peter Cohan Aug 17th 2009 at 6:30PM Oh wealthy people! How great it must be to know that while you are raking in about a quarter billion a year, you pay a lower tax rate than the average American family. And even better news -- thanks to the Crazy Channel which does such a great job of making your interests popular with the angry mob, hundreds of those averagely paid Americans will defend your right to pay lower taxes than they do. It pays to be among the top 400 taxpayers who earned roughly $250 million on average in 2005. According to an analysis by the New York Times and David Cay Johnston for Tax Notes (subscription only), the last IRS report on the top 400 taxpayers showed that they made a little more than a penny of each dollar of total income in America, but paid income taxes at a 17.2 percent rate. Add in payroll taxes, and the figure still rounds to 17.2 percent. Those top 400 paid a tax rate roughly half that of a family making $75,000 a year -- which was 37 percent -- 25 percent for the income tax rate and 12 percent for payroll tax. Top 400 taxpayers in the U.S. pay a 17 percent tax rate -- DailyFinance I have always defended lower taxes for the wealthy and everyone in general. However, when I see this, I become infuriated with everyone who defends lower taxes for the wealthy. But the really stupid thing is that calls for raising taxes on these people will do no good, because raising their rates won't change anything as they will still find ways to avoid paying. If there ever was a need for a flat tax with no deductions, here is the proof.