Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: J_F_Shepard who wrote (606190)	4/1/2011 9:11:48 PM
From: TimF	Read Replies (1) \| Respond to of 1580050

You mean you pay less than that? lol Most people do. Over 40 percent of people pay no net federal income tax, and the typical person who does pay federal income taxes pays at a rate lower than 20.7%. This is federal income tax rates, not total tax rates of all types combined. It is the rate after deductions and credits. Its average rate not the marginal rate. A single filer earning $50k would be in the 25% rate bracket but even assuming no deductions or credits beyond the standard deduction would not pay close to one quarter of his income in taxes. First you would have the standard deduction of $5,800. That brings the taxable income down to $44,200. On that $44,200 He would pay 10% on the first $8500 ($850) 15% on $8,501 - $34,500 ($3900) and 25% on the remaining $9700 ($2425) So you would have $50k of income (chosen as a round figure and because its a fairly normal income, nothing particularly special about it) and $7175 in federal income taxes. The marginal rate (rate you pay on each extra dollar) is 25% but the average rate is 14.35% And that's with no deductions (other than the standard deduction), most people earning $50k would pay a lower average rate. But it's nowhere near the 39.6% you were ranting about a before the tax cut vote....and certainly isn't the 36% currently the highest margin tax.... The 39.6% rate was the marginal not the average rate and it was if a tax increase went through, not with today's rates.