It might surprise you to learn that the top 25 wealthiest people in America paid only $13.6 billion in federal income taxes between 2014 and 2018, despite their total income increasing by $401 billion during that period. This equates to a true tax rate of just 3.4%. Given that 2024 tax rates range from 10% to 37%, with higher rates applied to higher income levels, this discrepancy raises significant questions. According to estimates by the US Treasury, over $150 billion in taxes owed by the top 1% goes unpaid annually. How is this possible? The answer lies in the access the wealthy have to several sophisticated tax-saving strategies:
