What is your total marginal tax rate?

[engineer4life]

<p>Just completed my taxes.</p>

<p>My marginal tax rate (including federal income, social security (employers share + employee share), property tax, fuel tax, and sales tax) is approximately 35%!</p>

[dstark]

<p>Well…govt spending is about 40% of the economy…</p>

<p>So…</p>

[notrichenough]

<p>You can’t include property tax, fuel tax, and sales tax in a marginal tax rate because they are not based on income.</p>

<p>Are you trying to calculate your overall tax rate, maybe?</p>

[dadinator]

<p>Sounds like it.</p>

<p>A single person with taxable income over $34,500 woull have a marginal tax rate of over $35%, if you include the employers share of FICA (25% federal income plus 15.3% for FICA).</p>

[engineer4life]

<p>Sorry, meant effective tax rate or total tax rate, not marginal.</p>

<p>A person who makes $35,000 does not pay 35% in taxes, even when including social security (including the employers share). The 25% income tax only applies to the last dollars made, the first dollars are taxed at a much less rate.</p>

[zoosermom]

<p>How come you didn’t include state and local taxes?</p>

[engineer4life]

<p>

How come you didn’t include state and local taxes?

</p>

<p>I did. (10 char)</p>

[emeraldkity4]

<p>so how do you feel about a state income tax?</p>

<p>The 25% income tax only applies to the last dollars made, the first dollars are taxed at a much less rate.</p>

<p>

Married Filing Jointly or Qualifying Widow(er) Filing Status</p>

<p>[Tax Rate Schedule Y-1, Internal Revenue Code section 1(a)]
10% on taxable income from $0 to $17,400, plus
15% on taxable income over $17,400 to $70,700, plus
25% on taxable income over $70,700 to $142,700, plus
28% on taxable income over $142,700 to $217,450, plus
33% on taxable income over $217,450 to $388,350, plus
35% on taxable income over $388,350.

</p>

[engineer4life]

<p>

so how do you feel about a state income tax?

</p>

<p>Don’t like it one bit.</p>

[sorghum]

<p>All that tax, you would expect to get, oh, European-style health, childcare, and education benefits.</p>

[hops_scout]

<p>

All that tax, you would expect to get, oh, European-style health, childcare, and education benefits.

</p>

<p>Plenty of people do. Just not the ones paying the income tax…</p>

<p>If we all want it, we better plan for taxes to go up a lot more!</p>

[momof2kids]

<p>Engineer - I feel your pain. Our effective and marginal rates are high too. I know there are lots of examples of people getting around taxes with some investments (certain private equity or keeping some sheep and claiming a “farm”), but I think most of us are much closer to paying the published rates. In my home, we are blessed with good jobs and health and have also worked out butts off. It is a lot of money! We are getting killed by the AMT which was never intended to capture folks like us. I appreciate so many of the things our taxes pay for, but I do think the system could be much simpler and fairer. The problem is politics and using the tax code to achieve legislative goals, IMHO.</p>

[silverlady]

<p>I have a fantasy . . . Every member of the US Congress (both house and senate) must do their own taxes – alone. They are locked in a room with no phone or fax. All they have is the US tax code. They must do their own taxes with no outside assistance – just the tax code. Then, each and everyone of the are to be audited. This is to happen every year. It would be interesting.</p>

[emeraldkity4]

<p>Aren’t taxes in Scandinavia more like 46%-56%?</p>

[busdriver11]

<p>“Engineer - I feel your pain. Our effective and marginal rates are high too. I know there are lots of examples of people getting around taxes with some investments (certain private equity or keeping some sheep and claiming a “farm”), but I think most of us are much closer to paying the published rates. In my home, we are blessed with good jobs and health and have also worked out butts off. It is a lot of money! We are getting killed by the AMT which was never intended to capture folks like us. I appreciate so many of the things our taxes pay for, but I do think the system could be much simpler and fairer. The problem is politics and using the tax code to achieve legislative goals, IMHO”</p>

<p>So right. I ditto every word, especially the last sentence!
I like silverladies solution. Of course, you know they would cheat, it’s in their blood.
I’m sure taxes are much higher in Scandinavia. Of course, you get alot more for your money, in social services, health care and education, so it’s hard to compare.</p>

[hops_scout]

<p>

Of course, you get alot more for your money, in social services, health care and education,

</p>

<p>That is, if you’re one of the chosen ones to get an education.</p>

[alwaysamom]

<p>^^ Don’t have to be “one of the chosen ones” in Canada. :)</p>

[qdogpa]

<p>^^no, but you HAVE to be in Canada,and why would anyone. ;)</p>

[hops_scout]

<p>We’d get a lot more education for our money if we didn’t waste so much of it. But to do so would not be politically correct here in the US…</p>

[poetgrl]

<p>

I have a fantasy . . . Every member of the US Congress (both house and senate) must do their own taxes – alone. They are locked in a room with no phone or fax. All they have is the US tax code. They must do their own taxes with no outside assistance – just the tax code. Then, each and everyone of the are to be audited. This is to happen every year. It would be interesting.

</p>

<p>Yes, and they would have to be fined appropriately for every mistake. The tax code is a jobs program for CPAs.</p>

<p>Hopscout, you don’t need to be politically incorrect to get more education for your tax dollars, just stop the “war on drugs” and minumum sentencing, decriminalize (which is not the same as legalization) and you will free up a heck of a lot of state dollars for education. ;)</p>