"If your opponent is of choleric temperament, seek to irritate him." - Sun Tzu
I couldn't care less if you don't like my opinions. People who want to jack my taxes up I see in the same light as some robber who comes in my house and seeks to steal what I have
I am not forgetting any significant tax. I have done this analysis for many, many income levels. Unless you had some very rare economic event, its rare that all in taxes exceed 36% (include sales, luxury taxes, FICA, property, income, state income).... again, taxes are often deductible, which lowers impact and kick in and kick out at different levels.... you all in taxes are considerably less than 50%....
15.4% Socialist Security
17% Federal income tax, $50K, single. (2009 1040A tax tables)
5% California Tax, $50K, single.(2009 540 California tax tables)
2% For all the petty withholding taxes.
9% Sales taxes
Hmm....15.4+17+5+2+9 = 48.4%
Should we add in fuel taxes, registration fees, property taxes, telephone taxes, and all the other nickels and dimes our governments steal from us, and it's easy to see why tax freedom day is never in February.
Last edited by Scarecrow Akhbar; 07-11-10 at 12:19 PM.
1) your social security tax rate is 7.65%, not 15.4 (the other amount is an employer tax... paid entirely by the employer, it ain't your money) I am employer. I pay these taxes, my employees do not. I set their salaries at market, this additional tax is over and above that salary.
2) the 17% tax on federal income is on your TAXABLE income, not what you earned. Assuming you are single and do not itemize, you have a $5700 standard deduction and $3650 exemption, that is $9,350 of your income for which is exempt from Federal Income (and usually state income taxes). So, if your taxable income was $50,000, let me assume you had a salary of 59,350.... Hence you had an effective rate of 14%.
3) If you itemized, you would be deducting your CA income tax on your federal return, hence you effective callifornia rate would be 5% * (1-25%) or 3.75%, but you did not itemize, so we will count the California rate at 5%...except, again its not on the whole income, so call it 4%
4) Sales tax. The only way you paid 9% in sales tax is if you spend every penny on consumable goods and did not eat or have a roof over you head. We know that was not the case. Likely only 20% of your income went for goods subject to sales tax, but lets' call it 30% to cover your fuel and phone ... so you paid 9% on $17,800 this rounds up to 3% of your income
5) Property taxes. Don't complain here, you don't itemize so you don't have property and property taxes. If you did, your income tax bill would have been lower
6) Registration fees - are fees, that is their nature... to apply the incident to the user. Don't call them taxes
7) Petty withholding taxes - I don't know what this is, so I will credit this to your account
OK... shall we: 7.65+14+4+3+2= 30.65% (including all of your miscellaneous items, which you did not include)
Thus proving my point, there is a general lack of understanding of how taxes work. People that just want to add one tax on top of another and work themselves into a frenzy with a bad conclusion and giving themselves undo heartburn.
its like the morons who think Ted Kennedy, Hillary Clinton or the current marxist in chief wants to help them. In reality, those dems want to keep people dependent on the government and addicted to voting dems into wealth and power