Core Insights - Only 3.8 million Americans, or 1.1% of the U.S. population, have achieved millionaire status according to Empower [1] - The U.S. tax system imposes a higher effective tax rate on wealthier individuals due to its progressive nature [2] Taxation of Millionaires - Millionaires can be categorized into two groups: those with a net worth exceeding $1 million and those earning $1 million or more annually, with the latter group estimated at around 800,000 Americans [4] - Millionaires with long-term capital gains typically face a combined effective tax rate of 26.45%, resulting in annual tax payments of just over $264,000 [5][6] - For millionaires earning $1 million or more annually, the estimated tax burden is over $425,000, which includes various taxes such as income, Social Security, and Medicare, leading to an effective tax rate of approximately 42.51% [7]