For the typical middle income family, they're probably going to be closer to 20% than 25.
Let's look at some figures ok? Enough of this poetic license. You guys need to stop bitching about taxes.
Al
Federal Income Taxes Have Declined Significantly in Recent Decades Federal income taxes on middle-income families have declined significantly in recent decades. In 1998-2000, the years before the 2001 tax cut enacted by President Bush and Congress, the median-income family of four paid roughly 8.0 percent of its income in individual income taxes, according to TPC estimates — a smaller share than in any year since 1967. [4] The Bush tax cuts further reduced taxes for middle-income taxpayers, and January’s “fiscal cliff” bill (the American Taxpayer Relief Act) made these middle-income tax cuts permanent. TPC estimates that the median-income family of four will pay 5.3 percent of its 2013 income in federal income taxes when it files its return next year.
The 5.3 percent rate (as well as the other rates discussed here for 2013 and other years) is the effective tax rate, or the percentage of its income that a family pays in taxes. It is well below the 15 percent marginal tax rate — the rate paid on a filer’s next dollar of income — that a family of four in the exact middle of the income spectrum faces. A family’s effective tax rate typically is significantly lower than its marginal tax rate because the family takes the standard deduction (or, in some cases, itemized deductions), personal exemptions, and tax credits such as the child tax credit, and because a portion of the family’s taxable income is taxed at lower rates. (For the median-income family, some of its income is not taxed, some is taxed at a 10 percent rate, and some is taxed at a 15 percent rate.)
cbpp.org
Al |
