Income Tax Poll Results

I want to thank everyone who participated in my recent (and highly unscientific) poll on the proper tax rate on $10 million. We had a total of 624 votes.

The answers were widely distributed but I calculated an estimated median tax rate of 33.53%.

Tax Rate Votes Percentage
0% 21 3.27%
1% to 5%   4 0.62%
5% to 10% 9 1.40%
10% to 15% 18 2.80%
15% to 20% 47 7.32%
20% to 25% 77 11.99%
25% to 30% 78 12.15%
30% to 35% 95 14.80%
35% to 40% 102 15.89%
40% to 45% 65 10.12%
45% to 50% 47 7.32%
50% to 55% 34 5.30%
55% to 60% 5 0.78%
60% to 65% 11 1.71%
65% to 70% 4 0.62%
70% or more 25 3.89%

I’ve previously done similar polls for $25,000, $40,000, $100,000, $250,000 and $1 million.

Here are the results by estimated median vote:
$25,000: 2.66%
$40,000: 8.31%
$100,000: 16.33%
$250,000: 22.69%
$1,000,000: 28.23%
$10,000,000: 33.53%

Breaking out a little math, we can make a three-bracket tax code that links the data above. It looks like this:

The first $21,245 is tax-free.
$21,245 to $74,275 is taxed at 17.73%.
$74,275 to $671,715 is taxed at 26.93%.
Over $671,715 is taxed at 34.12%.

There are lots of ways to connect the data. We could add one more bracket at 10% and create a little more realistic code:

The first $18,350 is tax-free.
$18,350 to $28,410 is taxed at 10%.
$28,410 to $85,628 is taxed at 20%.
$85,628 to $85,628 is taxed at 27%.
Over $676,779 is taxed at 34.1%.

Posted by on November 5th, 2011 at 3:31 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.