Ernest Hemingway apparently got the answer wrong when F. Scott Fitzgerald told him “the rich are different from you and me” and Hemingway responded “Yes, they’ve got more money.”
His answer should have been: “They own businesses.”
The chart at the bottom of the page shows the probability that a taxpayer includes a partnership or S-Corp on his or her federal income tax return. As you can see, the odds of having business income increase substantially once adjusted gross income (AGI) exceeds $100,000. More than 40 percent percent of people with an AGI of $250,000 or more have one of these two types of businesses. More than 72 percent of the really wealthy – people who earn more than $1 million per year – have a partnership or S-Corp. And nine-in-ten of the super wealthy – people with an AGI in excess of $10 million – have one of these.
To read the full, original article click on this link: The “Top One Percent” Own Businesses
