Do you do your own taxes?

saillakeerie
Fri, 15 Apr 2022 21:04:53 +0000

Not sure what indirectly means in the context of my question. But from the article that you linked:

On average, the rate of income tax that people pay does climb as incomes ascend into the top 1%, but when you get to the range of $2 million to $5 million, that trend stops. The group earning in this range, composed mostly of business owners and workers with extremely high salaries, paid an average income tax rate of 29% from 2013 to 2018. After that, average tax rates actually drop the further up in income you go.

And yes, payroll taxes (which support 2 specific government programs–each with significant solvency issues and not the general federal treasury) are limited to labor and capped at specific income levels (with benefits based on amounts contributed). That has been the case for how long?

You could add untaxed employer medical insurance premiums to income in the analysis. Its definitely a benefit. Would have a bigger impact on those with lower incomes (employer premium paid is same for employee making $40k/year as it is for one making $200k/year – family situations being the same) looking at effective tax rate.