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Question about tax in the US

faZefaZe Registered User Posts: 57 Junior Member
edited December 2006 in College Life
How many percent of your salary goes in tax? Does it matter how much money you make?
Post edited by faZe on

Replies to: Question about tax in the US

  • sciencenerdsciencenerd Registered User Posts: 1,726 Senior Member
    I think as you get more money the tax rises. But I think it's around like 30-35 percent for the middle class. There are other factors though. Like kids and such.
  • ShadowOfAnEnigmaShadowOfAnEnigma Registered User Posts: 922 Member
    Income taxes depend on your how much you make and your marital status, with higher rates of taxation for those people with higher incomes. Based on a quick google, it seems that the current rates for are:

    For single people
    If you make between ………………....…You pay
    $0 and $7,550……………………......……..10%
    $7,550 and $30,650…………………….....15%
    $30,650 and $74,200……………………....25%
    $74,200 and $154,800………………….….28%
    $154,800 and $336,550……………………33%
    $336,550 and above…………………..……35%

    For married people:
    If you make between ………………....…You pay
    $0 and $15,100………………..............10%
    $15,100 and $61,300………..............15%
    $61,300 and $123,700………............25%
    $123,700 and $188,450………..........28%
    $188,450 and $336,550……............33%
    $336,550 and above…...................35%

    And just FYI, the average American income is just over $40,000 per household and the average rate of taxation is 15% of income.
  • aswat12389aswat12389 Registered User Posts: 296 Junior Member
    There is a federal income tax, and then some states have another on top of that. I don't know if the above percentages are the federal only of if they have a state tax in them too. I would guess they are federal.
  • soccerguy315soccerguy315 Registered User Posts: 7,245 Senior Member
    that's also of taxable income

    and if you are a dependant it's different as well.

    I believe as well those are federal rates.
  • faZefaZe Registered User Posts: 57 Junior Member
    ok, but it seems like a pretty stupid system to me.

    let's say you're married and make $61,000 a year, then you have a 15% tax. Then you get a raise to $62,000 a year and your tax goes up to 25%. This means that, despite your raise, you will get a lower net pay each year.

    Why would you wanna get a raise if you lose money on it?
  • makshimmakshim Registered User Posts: 313 Junior Member
    Welcome to America. We punish people for success.
  • ericatbucknellericatbucknell Registered User Posts: 758 Member
    no, no, no. say you are filing alone and make 40000. you pay 10 percent on the first ~7000, 15 percent on the next ~23000, and 25 percent on the last ~10000. so in fazes example, the tax rate is 25 percent for only the last 1000 dollars.
  • tripperian35tripperian35 Registered User Posts: 1,153 Senior Member
    lol at makshim, u dont even know what ur talking about.
  • drusbadrusba Registered User Posts: 9,421 Senior Member
    You have federal income taxes, social security tax, medicare and medicaid tax, state income taxes, state and county sales taxes, real estate taxes if you own any property, capital gains taxes, extra taxes on many items such as gas, tobacco, ligour, etc., etc. etc.

    US taxes generally work like this: Let X be your income, let Y be all of your taxes, X - Y = Z, a negative number, take out loan to make up difference and pay a loan orginating tax.
  • makshimmakshim Registered User Posts: 313 Junior Member
    lol at makshim, u dont even know what ur talking about.

    Why should Billy pay more % than Tommy just because he actually bothered to get an education? Flat tax FTW.
  • soccerguy315soccerguy315 Registered User Posts: 7,245 Senior Member
    If the country has a population of 2, person A and person B, consider this:

    Current tax system:
    Person A makes $100,000 taxed at 28% leaves him $72,000
    Person B makes $20,000 taxed at 15% leaves him $17,000

    total for government = $31,000 in taxes
    total left in pocket = $89,000

    Flat tax rate:
    Person A makes $100,000
    Person B makes $20,000
    assume the government wants to collect the same amount of money, what will the flat tax rate be? It's roughly 26%. So:
    Person A makes $100,000 taxed at 26% leaves him $74,000
    Person B makes $20,000 taxed at 26% leaves him $14,800

    total for government = $31,200 (would be adjusted to $31,000 with the exact %)
    total in pocket = $88,800 (would be adjusted to $89,000 with the exact %)

    So Person B who makes $20,000 had to pay an extra 10% of his income, when the difference could have been covered by Person A at the cost of 2% of his income.

    however, that said, there are flat tax rates available to you. All you have to do is make your way to Slovakia, Georgia, Romania, Serbia, Ukraine, Russia, Latvia, Estonia, or Lithuania. Notice something common about those countries? Yea. Wonder why all the rich people don't move to those countries to get lower tax rates? Yea.
  • makshimmakshim Registered User Posts: 313 Junior Member
    I hope you weren't trying to relate a flat tax to the misfortunes of those countries.

    Once again I'll ask you why people should be punished for being succesfull. Just because it's easy for someone to swallow the loss doesn't make it right.


    Why don't we just charge Gates X billion dollars because he can afford it and I can't? That makes perfect sense, have one guy pull the load of several million.
  • JennyWrenJennyWren Registered User Posts: 39 Junior Member
    Why not do a flat tax, and give rebates to people who make below a certain threshold? It covers things like cost of living issues and would still be simpler than the current model.
  • soccerguy315soccerguy315 Registered User Posts: 7,245 Senior Member
    I'm not implying anything. I'm giving data, and you can interpret it for yourself.

    It is a legitimate question to ask why the richest of the rich live in countries that don't have a Flat Tax rate. They can easily up and move, but they choose not to. They can also easily choose to make less money, then they wouldn't be punished, right? But they don't choose that either.

    JennyWren just hit the biggest idea though I think. Most people that argue for a Flat Tax are actually arguing for simplification of the tax system, which can be done without a Flat Tax.
  • makshimmakshim Registered User Posts: 313 Junior Member
    "It is a legitimate question to ask why the richest of the rich live in countries that don't have a Flat Tax rate. They can easily up and move, but they choose not to. They can also easily choose to make less money, then they wouldn't be punished, right? But they don't choose that either."

    Would YOU want to live in Estonia? Even if you were rich?
This discussion has been closed.