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The endisnighe State of the Union Address

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posted on Feb, 3 2010 @ 04:24 AM
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reply to post by links234
 


Alright, I am going to pull the post from my tax thread into this thread-


From here-
post by endisnighe
 

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Income tax rate for the US is at 28% for my earnings bracket for the Fed.
SS tax rate at 6.2% with matching 6.2% by employer, hence 12.4% effective tax rate
Medicare at 1.45% with matching 1.45%, hence a 2.9% effective tax rate
California income tax rate is a cluster****
For single and married filing separately taxpayers:
-- 1 percent on the first $7,168 of taxable income
-- 2 percent on taxable income between $7,169 and $16,994
-- 4 percent on taxable income between $16,995 and $26,821
-- 6 percent on taxable income between $26,822 and $37,233
-- 8 percent on taxable income between $37,234 and $47,055
-- 9.3 percent on taxable income of $47,056 and above.
Okay so for me an approximate rate of 7% for income tax.
California SDI tax rate 1.1%
California UI tax rate on employers is from 1.5-6.2% so say an average of 4%

So far let us add this all up.
28+12.4+2.9+7+1.1+4=55.4% effective tax rate.

Now for the case of getting to this number I did a couple of shortcuts where rates on top of your income from the employer were applied so I will cutoff 5.4%.
----------------------------------------------------

100%-(28%federal+12.4%SS+2.9%Med+7%State+1.11%SDisa+4%Unem) =44.6% left over from just direct income taxes

I then added the the 5.4% back into the 44.6% because of shortcuts in my math, so 50% income tax rate.

I added the SS tax paid by the employer because if the employer did not have to pay that, they could raise pay amount. I did the same for the Medicare component.

Now everything in regards to direct income tax has now been taken and I have left the 50% left from my pay stub.

I cannot take into account everyone's varying rate or other things like deductions and such because the tax code is over 5000 pages.

The number here is rough, but close enough to show what I am getting across.

Now, all of the other taxes we pay. Just a couple examples.

Property taxes-if you rent or own, you pay property tax
Sales tax-if you purchase something, you pay sales tax. This has many hidden taxes. Think of everytime the product you buy changed hands, it received other taxes.
Licensing-both vehicle or public transport, also if you need a license for work or business
Inflation-the largest tax that we cannot see
etc etc etc

By the time you earn your money and then spend it to survive, you are paying in the price range of 50-75% of what your gross income is.

Now, do you know about the CAFR and what that is Comprehensive annual financial report? The government has more income then you can imagine.

Think about all of the non-disclosed tax collections, fees, tariffs, interest, licensing, mineral rights leases, land leases, etc etc etc.

These type things are hidden in the accounting tricks they perform. I have had accounting in college and it is almost impossible to work through their bull#.

I stand by my numbers. Other people have done more extensive work on Effective Tax Rates and their numbers are even higher then mine.

edit to fix some gramma

[edit on 2/3/2010 by endisnighe]



 
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