American tax / celebrity?

Question

I just read that Oprah makes 200 million a year, and i've heard of others like paris hilton making 35 million a year...

Im canadian and don't know how american tax works. Is it a standard tax or is it based on income? Thats a lot of tax on 200 million!

Answer 1

Oprah probably pays close to $70 million a year in Federal income tax alone with that income. You can donate up to half of your income to charity; that would halve her tax liability. She's noted for her generosity so that's rather likely.

Answer 2

Based on income after deductions with progressive rates--higher rates for higher income.