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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: i-node who wrote (397410)	7/9/2008 2:06:36 PM
From: michael97123	Read Replies (2) \| Respond to of 1575773

Nope..you are failing to note that the lower portions of earnings are taxed at lower rates. Plus it all depends on total income and deductions too. Same for state. Your 15% number is really 7.5 because every employer pays fica to match so self employed are only doing the same thing as if they were corporation. 300K after deductions, empoyee half fica on 103k, federal taxes prorated by brackets, state taxes---i would guess you keep about 160-170.

To: i-node who wrote (397410)	7/9/2008 2:27:09 PM
From: Road Walker	Read Replies (1) \| Respond to of 1575773

No, I'm not spinning. If you take a 20% combined FICA/Medicare tax rate, combine it with 10% state income taxes, and a maximum tax rate of 35% federal, that's 65%... So they are cumulative? He's paying 35% Fed and 10% State on the money he paid to FICA/Medicare?

To: i-node who wrote (397410)	7/9/2008 2:46:55 PM
From: Alighieri	Read Replies (1) \| Respond to of 1575773

That $195K of that $300K is spent on taxes. Look, the tax tables for this married fellow say the following: For 300K income, he pays 43K + 33% of income above 164K. That's a total fed income tax of 88K, or 29%. So, 29% + 20% (FICA + Medicare)= 49% of taxable income. Now, there is not a single state that charges 10% income taxes. The highest is Vermont, with 9.5. The lowest is zero in more than one state. Lets' assume he is a Colorado resident, he pays 4.63%. He's up to 53.6%. If he is reporting 300K in taxable income, this dude makes a lot more than that in actuality...he is clearing a lot more than you say he is. You are spinning negative big time... Al