Friday, February 19, 2010
Virginia newspapers reports this morning reveal that the top 400 tax filings reported average earnings of $345 million each, an increase of nearly one third over the previous year. Amazingly, this same group of high earners only paid taxes at an average rate of 16.6%, the lowest amount since 1992. I don't think the average citizen had wage growth of 33% and taxes of only 16%. I guess it pays to be super rich, even in a recession. On the bright side, if you receive an injury settlement as a result of an accident, the monies you put in your pocket are generally tax free. There are some exceptions to this rule so it is a good idea to have your personal injury lawyer advise you on this issue.