Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

The majority of Bill Gates "earning" is selling stock in MSFT which he held fro more than 5 years. Such cap gains are taxed at 5% (If sold after May 2003). He also has quite a lot of QSB gains half of which under exclusion 1202 are not even "reported" (no complaints, I get that too). I don't do his taxes, but I would not worry about him being "overtaxed". My point was that my wife (not I) who is an independent businesswoman, pays the marginal 35% plus 15% in "payroll taxes" this is a tax rate of 50%, while Gates (and I as well) pay a much lower tax rate. Most of the middle class with a marginal rate of let say 25% (family income or AGI under $115,000) actually pay a marginal tax rate of around 40%.