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Question about tax in the US
faZe
43 replies14 threads Junior Member
This discussion has been closed.
faZe
43 replies14 threads Junior Member
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Replies to: Question about tax in the US
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.
and if you are a dependant it's different as well.
I believe as well those are federal rates.
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?
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.
Why should Billy pay more % than Tommy just because he actually bothered to get an education? Flat tax FTW.
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.
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.
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.
Would YOU want to live in Estonia? Even if you were rich?