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Edited on Mon Oct-22-07 09:55 AM by Selatius
Earned income, or payroll income, is taxed at a maximum of 35% on the other hand. However, most middle class folks are usually in the 20-25% range as far as taxes go on payroll income. As a result, most CEOs are compensated through stock options and dividends on pre-existing investments, to dodge the higher tax loads. Their payroll income is often a fraction of the total income they get in a year.
Warren Buffett quipped that his office assistants are taxed more heavily on their payroll income than he is taxed on his capital gains income, which is where he gets 90% of his income at any rate.
You honestly didn't know it was only 15%???
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