Paying Taxes?

Question

do people who make alot of money have to pay more taxes to the government than people who dont make alot of money?
if so do the famous people have to pay alot of taxes?

Answer 1

Generally people who make more money pay more taxes, but it depends on how much taxable income they have versus deductions and tax credits. Rich people can get their tax liability down very low by careful planning. Every other tax payer can do the same, but with less available money it is harder to do.

The same answer goes with famous people.

Two examples are for tax year 2005, President and Mrs Bush paid $187,768 in taxes on $735,180 of income (26%). The same year Vice-President and Mrs. Cheney paid $529,636 in taxes on $8,819,006 of income (6%).

Why does the Cheney's pay so little when they make so much more? The Cheney's have $6,857,849 (77% of income) in itemized deductions compared with the Bush's $116,486 (16% of income) in itemized deductions. Needless to say the Cheney's focus a lot of their investments in things that are very tax efficient.

Answer 2

1st: Yes
2nd: Only if they make a lot of money. Robert Blake and OJ are famous but probably pay little in taxes.