U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 01-17-2013, 11:42 AM
 
4,829 posts, read 4,813,163 times
Reputation: 6172

Advertisements

Meaning, what income "boasts" the lowest ratio of take home pay to the total income? I'm talking basic taxes Federal, SS, Medicare, State, Local, Property, Sales. Let's assume that one works wage jobs for living, has negligible investment income, and he's subject to all the taxes above. I strongly suspect that those right in the middle 50-70K/year (especially the singles without children) are hammered the most.
Quick reply to this message

 
Old 01-17-2013, 11:50 AM
 
Location: Chicago
5,412 posts, read 8,289,029 times
Reputation: 6352
IMO, It is often the city-living (e.g. often renters w/higher city sales tax) upper-middle class, with higher than average incomes but few write-offs (no kids, no real estate, no business expense, no medical/unemployment problems, no breaks on college tuition, etc.)
Quick reply to this message
 
Old 01-17-2013, 06:52 PM
 
11,904 posts, read 14,382,431 times
Reputation: 7541
Quote:
Originally Posted by GoCUBS1 View Post
IMO, It is often the city-living (e.g. often renters w/higher city sales tax) upper-middle class, with higher than average incomes but few write-offs (no kids, no real estate, no business expense, no medical/unemployment problems, no breaks on college tuition, etc.)
Those earning wages but on Social Security. Above a certain level if you started collecting young, at some point your SS is cut by half of each dollar you earn, 50% right there. On top of FICA, Income tax and possibly all the other taxes you mention.
Quick reply to this message
 
Old 01-17-2013, 08:05 PM
 
Location: Metro Detroit, Michigan
11,920 posts, read 13,267,129 times
Reputation: 12663
Anyone not relying on capital gains as their primary source of income.
Quick reply to this message
 
Old 01-18-2013, 05:24 PM
 
Location: Forests of Maine
29,741 posts, read 47,539,222 times
Reputation: 17595
For a married couple they have:
personal exemptions of $3,800, X2 = 7,600.
standard deduction is $11,900.
= $19,500.

So the first $19,500 they earn is not taxed.

They may contribute to SS, if they both have SS policies in their names.

Beyond $20k they would be taxed at 15% up to $70k
Beyond $70k they would be taxed at 25% up to $142k
Beyond $142k they would be taxed at 28% up to $217k
Beyond $217k they would be taxed at 33% up to $388k
Beyond $388k they would be taxed at 35%, ...

Who gets taxed the least? Obviously couple earning less than $20k

Who is taxed the most? Folks in the 35% bracket.
Quick reply to this message
 
Old 01-18-2013, 06:58 PM
 
1,679 posts, read 2,488,658 times
Reputation: 1284
Quote:
Originally Posted by Submariner View Post
For a married couple they have:
personal exemptions of $3,800, X2 = 7,600.
standard deduction is $11,900.
= $19,500.

So the first $19,500 they earn is not taxed.

They may contribute to SS, if they both have SS policies in their names.

Beyond $20k they would be taxed at 15% up to $70k
Beyond $70k they would be taxed at 25% up to $142k
Beyond $142k they would be taxed at 28% up to $217k
Beyond $217k they would be taxed at 33% up to $388k
Beyond $388k they would be taxed at 35%, ...

Who gets taxed the least? Obviously couple earning less than $20k

Who is taxed the most? Folks in the 35% bracket.
Poor people want to believe they are somehow screwed over.

You also forget that all the government handouts go to the poor, that isn't included in the tax formula. Also remember the earned income tax credit gives the poor a negative tax rate. Yup they get money back from the govt.

The rich pay all the taxes both in amount and as a percentage of earnings.

Also remember that capital gains are taxed twice because corporate profits are taxed at 35%.
Quick reply to this message
 
Old 01-18-2013, 07:11 PM
 
Location: Forests of Maine
29,741 posts, read 47,539,222 times
Reputation: 17595
Quote:
Originally Posted by hartford_renter View Post
... You also forget that all the government handouts go to the poor, that isn't included in the tax formula.
I did not forget, I assumed that was off-topic.

The OP asked what income is taxed the most. I laid out who is taxed the most, and who is taxed the least.

btw; as a pensioner my income is below the bottom tax-bracket. I fall into the category of folks who are taxed the least. I do not 'believe' that I am somehow being screwed over.
Quick reply to this message
 
Old 01-18-2013, 07:29 PM
 
Location: In The Pacific
986 posts, read 1,135,120 times
Reputation: 1230
I'm retired, my wife and I live overseas and are exempt from paying California state tax! Ever since I started receiving my Social Security at age 62 a few years ago and gross over $55k a year, we've always e-filed a 1040A short form, because we have nothing to declare and no exemptions to be had! For the past 2 yrs we've owed Federal on the average of $600, which indicates not enough withholding is being taken out of my pensions, but we can live with that amount owing Federal.
I'm just curious what changes will there be in the 2013 tax laws and how much more will I end up paying if I don't modify my tax withholding! I use Turbo Tax on-line to do my e-filing every year and I'll eventually find out the answer to my own question!
Quick reply to this message
 
Old 01-18-2013, 07:40 PM
 
Location: Metro Detroit, Michigan
11,920 posts, read 13,267,129 times
Reputation: 12663
Quote:
Originally Posted by hartford_renter View Post
Poor people want to believe they are somehow screwed over.

You also forget that all the government handouts go to the poor, that isn't included in the tax formula. Also remember the earned income tax credit gives the poor a negative tax rate. Yup they get money back from the govt.

The rich pay all the taxes both in amount and as a percentage of earnings.

Also remember that capital gains are taxed twice because corporate profits are taxed at 35%.
There are other ways to look at it. Corporate welfare is just as much a handout as any other form of welfare. My opinion... If a company can't compete fairly, it's not the taxpayers job to pay their execs bonuses and guaranteed profitability. Most of us work very hard, and bend over backwards when it comes tax time. Why shouldn't a large corporation or bank be held to the same standards? And hey, I wish 3/4ths of my pay could be in the form of stock options so my tax obligations would be smaller. Middle class Americans play by a much different set of rules however...
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top