That figure doesn't include income from investments, which would make the gap even larger.
Annuity income can supplement Social Security benefits, income from investments, and retirement account distributions.
Relative to poorer Americans, wealthier Americans derive more of their income from investments.
This is because wealthy tax filers make most of their income from investments.
They must pay a new 3.8% levy on income from investments, possibly including profits from the sale of a home.
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Among those in the top 0.1 percent, people who get less than 10 percent of their income from investments pay an average ETR of 26 percent.
The assumption is that the folks in his office are primarily W2 wage earners, although they probably also have a significant amount of income from investments in the Berkshire Hathaway company as well.
Already, banks' overall profit margins nationwide have fallen to 0.15% at the end of September from 0.21% two years prior as income from investments, including bonds, has fallen, according to the Japanese Bankers Association.
The average income-tax rate was 14.4% for the top fifth, and 19% for the top 1%, before dropping slightly for the very highest earners who, like Mr. Romney, typically receive a large percentage of income from investments.
Within the top quintile, for example, people who get less than a tenth of their income from those sources face an ETR of nearly 21 percent, compared with an ETR under 12 percent for those who get more than two-thirds of their income from investments (see graph).
As the lockout continues, players are affected not only by their loss of income but by a potentially messy situation under which their home countries may seek to tax income earned during the lockout, which would include income from investments, endorsements and their 2011-12 NHL escrow payment, which was made in October and amounted to nearly 8% of their 2011-12 salary.
Mr. Buffett makes most of his income from his investments, particularly from dividends and capital gains that are taxed at a rate of 15%.
The impact has been less benign on folks who prudently saved, hoping to generate a decent retirement income from conservative investments.
However, less than 2% of the Obamas' 2012 income was from investments.
Mostly because the vast majority of our income comes from investments stock dividends and capital gains which are taxed at a maximum rate of 15%.
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Romney, who earned all of his multi-million dollar annual income from passive investments that are taxed at 15 percent, would fall under the same tax standards as all other 9-to-5ers.
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So long as these investors can bring in enough income from their investments to offset inflation, it ensures that they will be able to purchase the same amount of goods or services in the future as they can today.
The affluent should still be able to cover the costs with income from pensions and investments.
We keep as much income generated from our investments in the business so there are always funds available for unpredictable repairs, etc.
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The Asia-focused bank said Wednesday that operating profit was "slightly down" in the first three months of 2013 from the same 2012 period because of tighter loan margins, a rise in souring consumer loans and lower income from its own investments.
He might start with a tutorial on tax policy using his own return as Exhibit A. It's likely that he enjoys his relatively low rate because most of his income is derived from investments, which are taxed at 15% for individuals (after they are first taxed at the business level), rather than wages, which are subject to a top rate of 35%.
If you need the interest from these investments for income, you can probably get a better rate of return from other investments.
This means income earned from various forms of investments such as rental income are usually included in the determination of the 3.8% Medicare Surtax, so long as it is not earned during the ordinary course of trade or business.
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Economic net income includes unrealized gains from investments and accounts for the mark-to-market value of its buyout holdings and excludes other costs.
In the past quarter the bank's fee income grew by 36%, much faster than income from lending, as investments in asset management, insurance and stockbroking began to pay off.
But arithmetically, it's nowhere near enough to re-balance the economy, especially when domestic investment is still weak, and the income we earn from our investments abroad has fallen off a cliff.
Once the rebalancing into more conservative allocations is complete, the next step for many retirees is to begin to take distributions from their IRAs and other investments to supplement their income from Social Security and pensions.
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Keith Pomroy , editor of SNL Real Estate Securities Monthy, says that even if corporate dividends enjoy tax-free status at the individual level, REITs, which are required to pay out at least 90% of their income, will continue to enjoy advantages over other investments, from an income perspective.
And since they can direct 30% of their assets into whatever they please, BDCs can finagle higher income through investments in anything from Treasury bonds to Microsoft stock.
On average, today's pensioners are around 50% better off than their counterparts in 1979, and fewer pensioners are poor, because increasing numbers receive income from private pensions and other investments.
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