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How do you get that?
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12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio Regum -
I don't know if I believe that. Look at the grand larceny that's called the American health care system. We've got this weird situation where much of the middle class has voted against their material interests due to cultural anxieties. I think that's a lot more valid in other western societies...Originally posted by KrazyHorse
They are the most pampered in terms of receiving the most value from the government versus the amount they pay to the government."Beware of the man who works hard to learn something, learns it, and finds himself no wiser than before. He is full of murderous resentment of people who are ignorant without having come by their ignorance the hard way. "
-BokononComment
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Depends on where you live. In DC, you pay 60% of your federal taxes to the DC gov't. Add in FICA (which, admittedly, is also paid by someone earning $6k as well).
Of course, there are various optional things you can do to raise your effective tax rate, like not pay into your 401(k).I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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From what I can see, including payroll, state and local taxes you're talking more like 35% for a single filer with no dependents.12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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60% of federal? Are you kidding me? In Baltimore city you pay ~8% almost flat rate between state and local.Originally posted by DanS
Depends on where you live. In DC, you pay 60% of your federal taxes to the DC gov't.
Add that to 7% payroll taxes and ~21.5% effective federal tax rate on a SINGLE filer with no dependents and you get 36.5% effective tax rate as the absolute maximum.12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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Yes...and? The middle class gets that giveaway when they get to be older too...in addition to getting the health insurance tax giveaway. And the primary residence tax giveaway.Originally posted by Ramo
I don't know if I believe that. Look at the grand larceny that's called the American health care system12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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Dan, I just looked up the DC tax info. Top marginal rate is 8.5%12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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Well, I guess more like 40%+.
Somebody making $120k will be paying about $25k in Federal taxes (on the basis of roughly $110k in taxable income). A DC resident will be paying an additional $15k. FICA will be $9. Total is $49k, or 41% of income.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Effective tax rate on 120k is < 7.5%12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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No. A DC resident paying taxes on 120k of TAXABLE income only pays 9kOriginally posted by DanS
A DC resident will be paying an additional $15k.12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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Let me check on that. You may be right. I guess I've never had to pay those amounts.
I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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4% of first 10k
6% of next 30k
8.5% thereafter12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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Yes, looks like you're right.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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It works out to ~36% total.
Now, in reality an individual's tax burden is much higher than that, but we were discussing the effects of taxes on nominal incomes. The other taxes are things like:
Sales taxes
The employer contribution to the FICA tax (tax incidence theory shows that employees end up paying almost all of this)
Property taxes (though even renters pay this, again by tax incidence theory)12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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Yes, yes. I agree that those should be considered in the tax burden, but are outside the scope of what was being said.
Well... You probably should take into consideration the differentials in sales tax rates for things purchased by people with different incomes. Unprepared food isn't taxed while take out is taxed 10%, etc. Food is a much larger proportion of the $6k income than the $120k income.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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