Tax rate really 40% for everyone - The Orange Mane

cutthemdown · 02-21-2007, 12:30 PM

http://articles.moneycentral.msn.com....aspx?GT1=9115

We have a national flat tax, albeit one with bumps and potholes.

The fact that the political parties won't acknowledge this is one reason they are doing a disservice to the voting public.

Instead, both parties have a vested interest in the theatrical possibilities created by the idea of graduated tax rates. Notice that I said "the idea of" graduated tax rates. That should not be confused with reality.

Democrats argue that taxes on the rich should be raised because others need the money. This wins votes from the legions of voters who aren't rich.

Republicans argue, with great piety, that high taxes crush incentives and should be reduced, and that only then will the American way see a new dawn.

Politicians talk this way because they generally talk about only one tax: the federal income tax, which offers graduated rates from 10% to 35%.

Politicians rarely talk about what real people experience: the true maze of taxes and government benefits. If someone put them all together, we could see what our actual tax burden was. We could see who pays at the highest or lowest rates. Discussions of tax policy wouldn't be a waste of time.

Well, two researchers did it.

In a study for the National Bureau of Economic Research, Boston University economists Laurence J. Kotlikoff and David Rapson have found that our all-in marginal tax rate is 40%, give or take a bit. Yes, you read that right: 40%.
More from MSN Money
© Photodisc / Getty Images

* Your tax return: What you need to know
* Keys to avoiding a tax audit
* Tax corner: Get your questions answered
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* Cut your income taxes now
* Sorry, your tax refund has been delayed

Most workers will pay about that much on each dollar of income when all taxes -- federal and state income taxes, sales taxes, taxes for benefit programs, etc. -- are considered.

As a consequence, a 30-year-old couple earning only $20,000 a year has a marginal tax rate of 42.5%, while a 45-year-old couple earning $500,000 pays at 43.2%. There are some exceptions: A 30-year-old couple earning $50,000 a year, for instance, pays 24.4%, and a 60-year-old couple making $150,000 a year faces a tax rate of 47.7%.

The average marginal tax rate on incomes between $20,000 and $500,000 is 40.3%, the median tax rate is 41.8%, and the standard deviation of all of those rates is 5.3 percentage points. Basically, most of us pay about 40%, plus or minus 5.3 percentage points.

pretty good read but you wonder if these numbers are right.

alkemical · 02-21-2007, 12:36 PM

I dunno i added up one time ALL my taxes, state, local, fed, sales tax, entertainment tax, etc and i got up to 48% for everything.

land of the free? Seems it's gonna cost ya....

cutthemdown · 02-21-2007, 12:37 PM

Quote:

Originally Posted by claviculasolomonis

I dunno i added up one time ALL my taxes, state, local, fed, sales tax, entertainment tax, etc and i got up to 48% for everything.

land of the free? Seems it's gonna cost ya....

so then you feel these numbers are pretty accurate. It's no wonder people are struggling to make ends meet and party like rock stars.

alkemical · 02-21-2007, 12:40 PM

Quote:

Originally Posted by cutthemdown

so then you feel these numbers are pretty accurate. It's no wonder people are struggling to make ends meet and party like rock stars.

I'm not sure what you mean by the bolded section.

I feel it's accurate. Occupational tax, sales tax, FICA, fedincome, state income, local income - tax by district. Additional Tax on Cigs, gas tax, on and on and on.

Pretty much it seems all transactions are looking at having a tax.

Spider · 02-21-2007, 12:53 PM

with 9 dependents, I still paid 2,800 and some change .......... I claim my self twice as head of household

Bronco Bob · 02-21-2007, 01:12 PM

You are taxed on your income by the Feds, and the State, and even some cities.
Then of the money you have left over you pay the county property taxes,
directly if you own, indirectly if you rent.
Then of the things you buy, you may pay federal, state, county, and city
sales taxes.
You pay taxes on your phone bill, sometimes more than the actual
cost of the phone service itself.
You pay gasoline taxes.
You pay taxes for cable TV.
I can see where it adds up to 40%

cutthemdown · 02-21-2007, 01:18 PM

Quote:

Originally Posted by claviculasolomonis

I'm not sure what you mean by the bolded section.

I feel it's accurate. Occupational tax, sales tax, FICA, fedincome, state income, local income - tax by district. Additional Tax on Cigs, gas tax, on and on and on.

Pretty much it seems all transactions are looking at having a tax.

just my sense of humor lol!!!!!!!

alkemical · 02-21-2007, 01:35 PM

lol gotchya now...

bendog · 02-21-2007, 01:43 PM

I blame Clinton

cutthemdown · 02-21-2007, 02:12 PM

Quote:

Originally Posted by bendog

I blame Clinton

Which one?

alkemical · 02-21-2007, 03:03 PM

Quote:

Originally Posted by cutthemdown

Which one?

It was that ****in' cats fault

cutthemdown · 02-21-2007, 06:17 PM

Quote:

Originally Posted by claviculasolomonis

It was that ****in' cats fault

if it was the dogs fault all we would have to do is call Babineux from the Falcons. That dude murders dogs for fun!!!!!

alkemical · 02-21-2007, 06:53 PM

Quote:

Originally Posted by cutthemdown

if it was the dogs fault all we would have to do is call Babineux from the Falcons. That dude murders dogs for fun!!!!!

I ran into some satanists whom did that as well....

Spider · 02-21-2007, 07:06 PM

you guys want taxes , I went partnership with my Brother 50/50 , I am back to paying IFTA tax , Road use Tax , tax on my permits , base plate , and of course all the taxes you guys pay ......... But take today , I got paid 110.00 per hour to surf the net , I got in 52 hours in 3 days .........

02-21-2007, 12:30 PM	#1
cutthemdown A verbis ad verbera Zimm to HOF Join Date: Mar 2006 Location: Long Beach Posts: 32,531	Tax rate really 40% for everyone http://articles.moneycentral.msn.com....aspx?GT1=9115 We have a national flat tax, albeit one with bumps and potholes. The fact that the political parties won't acknowledge this is one reason they are doing a disservice to the voting public. Instead, both parties have a vested interest in the theatrical possibilities created by the idea of graduated tax rates. Notice that I said "the idea of" graduated tax rates. That should not be confused with reality. Democrats argue that taxes on the rich should be raised because others need the money. This wins votes from the legions of voters who aren't rich. Republicans argue, with great piety, that high taxes crush incentives and should be reduced, and that only then will the American way see a new dawn. Politicians talk this way because they generally talk about only one tax: the federal income tax, which offers graduated rates from 10% to 35%. Politicians rarely talk about what real people experience: the true maze of taxes and government benefits. If someone put them all together, we could see what our actual tax burden was. We could see who pays at the highest or lowest rates. Discussions of tax policy wouldn't be a waste of time. Well, two researchers did it. In a study for the National Bureau of Economic Research, Boston University economists Laurence J. Kotlikoff and David Rapson have found that our all-in marginal tax rate is 40%, give or take a bit. Yes, you read that right: 40%. More from MSN Money © Photodisc / Getty Images * Your tax return: What you need to know * Keys to avoiding a tax audit * Tax corner: Get your questions answered * The 9 weirdest tax write-offs * Cut your income taxes now * Sorry, your tax refund has been delayed Most workers will pay about that much on each dollar of income when all taxes -- federal and state income taxes, sales taxes, taxes for benefit programs, etc. -- are considered. As a consequence, a 30-year-old couple earning only $20,000 a year has a marginal tax rate of 42.5%, while a 45-year-old couple earning $500,000 pays at 43.2%. There are some exceptions: A 30-year-old couple earning $50,000 a year, for instance, pays 24.4%, and a 60-year-old couple making $150,000 a year faces a tax rate of 47.7%. The average marginal tax rate on incomes between $20,000 and $500,000 is 40.3%, the median tax rate is 41.8%, and the standard deviation of all of those rates is 5.3 percentage points. Basically, most of us pay about 40%, plus or minus 5.3 percentage points. pretty good read but you wonder if these numbers are right.

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02-21-2007, 12:36 PM	#2
alkemical Guerrilla Ontologist rorrim\|mirror Join Date: Apr 2001 Location: Future Posts: 42,698 Adopt-a-Bronco: Prima Materia	I dunno i added up one time ALL my taxes, state, local, fed, sales tax, entertainment tax, etc and i got up to 48% for everything. land of the free? Seems it's gonna cost ya....

02-21-2007, 12:53 PM	#5
Spider Mr Diplomacy I survived Tebow Mania at the Mane Join Date: May 2001 Location: Elway was just an arm =MacGruder Posts: 84,438 Adopt-a-Bronco: Von Miller	with 9 dependents, I still paid 2,800 and some change .......... I claim my self twice as head of household

02-21-2007, 01:12 PM	#6
Bronco Bob Tastee Freeze Join Date: Dec 2002 Posts: 9,464 Adopt-a-Bronco: Champ Bailey	You are taxed on your income by the Feds, and the State, and even some cities. Then of the money you have left over you pay the county property taxes, directly if you own, indirectly if you rent. Then of the things you buy, you may pay federal, state, county, and city sales taxes. You pay taxes on your phone bill, sometimes more than the actual cost of the phone service itself. You pay gasoline taxes. You pay taxes for cable TV. I can see where it adds up to 40%

02-21-2007, 01:35 PM	#8
alkemical Guerrilla Ontologist rorrim\|mirror Join Date: Apr 2001 Location: Future Posts: 42,698 Adopt-a-Bronco: Prima Materia	lol gotchya now...

02-21-2007, 01:43 PM	#9
bendog Marginally Continent David Bowens, he'd be an upgrade Join Date: Jun 2001 Location: Folsom Prison Posts: 19,935 Adopt-a-Bronco: David Bowens	I blame Clinton

02-21-2007, 07:06 PM	#14
Spider Mr Diplomacy I survived Tebow Mania at the Mane Join Date: May 2001 Location: Elway was just an arm =MacGruder Posts: 84,438 Adopt-a-Bronco: Von Miller	you guys want taxes , I went partnership with my Brother 50/50 , I am back to paying IFTA tax , Road use Tax , tax on my permits , base plate , and of course all the taxes you guys pay ......... But take today , I got paid 110.00 per hour to surf the net , I got in 52 hours in 3 days .........