MTRegulas

Change is the universal constant

[MTRegulas @MtRegulas]

this is why you BTC

[MTRegulas @MtRegulas]

@lackynamber1234 @friedberg @elonmusk I wish you well

[MTRegulas @MtRegulas]

For a typical $400k earner (e.g., high-earning professional with W-2 salary), the effective federal income tax rate is roughly 24-28% on gross income, before state taxes. This assumes a single filer taking the standard deduction; it can vary with filing status, deductions, credits, location, etc.0
Quick Breakdown (2026 US Federal Brackets, Single Filer, Approximate)
•Marginal rate: Much of the income falls in the 32-35% brackets (top rate 37% above ~$626k taxable).1
•Effective federal income tax rate (after standard deduction ~$15k): Around 25-27% for $400k gross. Example rough calc: ~$103k tax liability → ~26% effective.3
•Plus payroll taxes (FICA): 7.65% employee share (Social Security caps, Medicare unlimited) + possible additional Medicare surtax (0.9% above ~$200k). This pushes the combined federal effective rate closer to 28-32%+ for wage income.
•State taxes (if applicable, e.g., CA/NY): Can add 5-13%, pushing total effective rates into the 35-45%+ range in high-tax states.
Real-world effective rates for this income level are often cited around 25-30% federal (income + payroll) depending on exact circumstances. Top 1% earners overall have effective federal rates in the 25-30% range when including all federal taxes.21
For someone like Elon Musk (~$1T net worth, mostly illiquid stock in companies like Tesla/SpaceX)
Effective tax rates on wealth growth are often much lower — historically in the low single digits (e.g., 3-8%) in years without major stock sales. This is because:
•Billionaires’ “income” for tax purposes is mostly realized gains, salary, or dividends — not unrealized paper gains from stock appreciation (the main driver of their wealth).
•They can borrow against assets (low-interest loans, not taxable income) instead of selling and triggering capital gains tax (up to 20% + 3.8% NIIT).
•Strategies like “buy, borrow, die” (hold assets, borrow against them, pass to heirs with stepped-up basis) minimize taxes.10
Examples from data:
•ProPublica analysis (2014-2018): Elon Musk’s “true tax rate” was ~3.27% ($455M taxes on $13.9B wealth growth). He paid $0 federal income tax in 2018.12
•Broader studies on Forbes 400 richest: Average effective federal income tax rates of ~8.2% (2010-2018) or similar low teens when measuring against economic income/wealth growth (including unrealized gains).26
•In years with big sales/exercises (e.g., options), rates spike higher (20-30%+), but averaged over time they’re far below wage earners.16
Ultra-wealthy effective rates on reported taxable income can still be high, but when benchmarked against total economic accrual (wealth increase), they’re low because most growth is untaxed until realized. Top 0.001% see all-in federal rates around 28-37% in some broader Treasury/CBO measures that include corporate/estate taxes, but this doesn’t capture the unrealized portion that defines billionaire wealth.21
Key Differences
•$400k earner: Pays on earned income immediately via withholding/payroll. Progressive brackets hit hard.
•$1T net worth individual: Wealth is mostly unrealized capital appreciation → deferred/low-taxed. Liquidity via borrowing avoids realization. Taxes paid can be minimal relative to net worth growth in low-realization years.
This is a core reason for debates on “fair share,” unrealized gains taxes, or minimum taxes on billionaires. Rules are legal and apply broadly (not unique to any one person), but outcomes differ sharply by income source. Actual rates depend on year, sales, deductions, etc.—consult a tax pro for personal situations. State/local taxes and other factors add more layers.

[MTRegulas @MtRegulas]

@adobo_bro @friedberg @elonmusk I did miss the point 😬 - I still don’t love the tax code. High wage owners get raked more than they should. Rake the trillionaires and billionaires.

[MTRegulas @MtRegulas]

@SantiagoAuFund @Bluntz_Capital ?

[MTRegulas @MtRegulas]

@Tradermayne Hadestown

[MTRegulas @MtRegulas]

@SantiagoAuFund Woah! Gonna have to watch that a second time

[MTRegulas @MtRegulas]

@CarpeNoctom 🥺

[MTRegulas @MtRegulas]

@Tradermayne can you highlight the gay line like last bear market?

[MTRegulas @MtRegulas]

@NUCLRGOLF P

[MTRegulas @MtRegulas]

@ezcontra It’s June brother

[MTRegulas @MtRegulas]

@NatronJohn @Buddie52 😂😂😂😂

[MTRegulas @MtRegulas]

@jamesonhaslam @SamuelTees @bowtiedpixel Woah, that is insane

[MTRegulas @MtRegulas]

@jiratickets 30 years I guess idk

[MTRegulas @MtRegulas]

@Tradermayne Okc

[MTRegulas @MtRegulas]

@SantiagoAuFund It’s a bad look, obvious why he has to do it but maybe instead of fighting it they could adapt.

[MTRegulas @MtRegulas]

@CarpeNoctom 200w ema and yearly pivot at ~3.05

[MTRegulas @MtRegulas]

@CarpeNoctom How could we forget TIA 😂 - rode the wave up last pump, thanks to you I also didn’t become a community member.

[MTRegulas @MtRegulas]

@Mike_kim714 Good luck!

[Michael S. Kim @Mike_kim714]

Southampton NY isn’t the easiest place to get to so I might as well get this started early!

Ticket giveaway for the US open!

Bonus points if you take a kid
(12 and under are free)