I’ve done some searching of GQ and I don’t think this question has been asked and answered before. First, some disclaimers: yes, I know taxes are a very complicated issue. I’m looking for a rough ballpark estimate here, nothing more. It’s not like this is going to apply to me any time in the near future. This is really more idle curiosity than anything else.
With that said, here’s my question: suppose I’m an employee of a corporation of which I’m also 10% owner, and the company sells for $10M. I’m given a check for my share, $1M. How much does the federal government get and how much do I get to keep? What if my cut was $3M instead of $1M?