20%, you mean, for federal long term capital gains.

Plus 3.8% for Net Investment Income Tax.

Plus, he resides in CA, so tack on ~12% (he's making so much marginality doesn't really affect things) in state taxes.

~36% in total, which is a lower effective tax rate than many people here, but not quite as outrageous.

There's actually another 1% in CA on income over $1 million in California, so it's 13.3% + 23.8% = 37.1%

I'm not a tax lawyer, but 20% is the long-term capital gains rate for earnings greater than $400k or so - https://www.nerdwallet.com/blog/taxes/capital-gains-tax-rate...

That page also calls out a "net investment income tax" that sounds like it would add an additional 3.8% on such large capital gains.

good old long term capital gains, although they were taxed on the way in if i understand these things correctly