How much of your paycheck goes toward paying taxes?

[indy_85stariones]

I am self-employed. I write myself a modest paycheck every 3 months. Here is what I pay in taxes.

I pay 12.4% to social security
I pay 2.9% to medicare
I pay .4% to federal unemployment
I pay 14.5% to federal income tax
I pay 3.4% to state income tax
I pay 6.0% to state sales tax
I pay .9% to hidden taxes on gasoline, phone service, new car, etc.
I pay 7.0% to local property taxes.

Folks, that is 47.5% of my annual income. Does this seem reasonable to everyone?

 

[Big Daddy]

Teresa Kerry paid 12% Federal Income tax, you should call her for advice.

 

[Abdoman]

LOL

 

[Bryan330i]

Deleted

 

[gizzy]

Teresa Kerry paid 12% Federal Income tax, you should call her for advice.

Which is why he is for raising taxes. He will insure that he still pays 12% while (cause he gets to have a say in the rules) the rest of us pay 23+ (Yes, this is just my personal exagerated opinion). I'm personally for a flat tax with limited deductions/credits. IMO tax rates should NEVER change and if the government wants more money, they need to figure out how to get the american people more money, otherwise, they need to make the same kind of cutbacks that the rest of do.

The city of Chicago made sure that the Mayor and the councel members would get raises over the next 5 years, but are telling the city employees that they will have to take a wage cut or no raises and take off extra days this year without pay - otherwise, there will have to be layoffs.

 

[aNoodle]

I am self-employed. I write myself a modest paycheck every 3 months. Here is what I pay in taxes.

I pay 12.4% to social security
I pay 2.9% to medicare
I pay .4% to federal unemployment
I pay 14.5% to federal income tax
I pay 3.4% to state income tax
I pay 6.0% to state sales tax
I pay .9% to hidden taxes on gasoline, phone service, new car, etc.
I pay 7.0% to local property taxes.

Folks, that is 47.5% of my annual income. Does this seem reasonable to everyone?

It's crazy isn't it!?! And Bush still managed to explode the deficit...didn't veto a single Republican pork barrel bill that came across his desk IN FOUR YEARS. Just goes to show what a Repbulcian controlled White House, Congress, Senate and Supreme Court will do. And he even passed a whole new entitlement drug program for the cry-Baby Boomers.

Oh, and you can't just add them together like you did and say that's your total tax on your income. You doubled and tripled up on sales and property taxes and whatnot.

 

[Bryan330i]

Deleted

 

[Big Daddy]

Wow aNoodle if that is the case, "And Bush still managed to explode the deficit...didn't veto a single Republican pork barrel bill that came across his desk IN FOUR YEARS. " then where did Bryan get all those Homeland Security budget cuts that he post all the links to where Bush cut this and Bush cut that? Man you guys want it both ways don't you?

 

[Bryan330i]

Deleted

 

[gizzy]

...getting my news only from Michael Moore.

Ohhhh... now we can't trust you at all!

Looks to me that he is spending a boatload of money on homeland security and congress is doing the unnecessary spending. http://www.cnn.com/2003/ALLPOLITICS/02/20/bush.spending.ap/

 

[Bryan330i]

Deleted

 

[aNoodle]

Wow aNoodle if that is the case, "And Bush still managed to explode the deficit...didn't veto a single Republican pork barrel bill that came across his desk IN FOUR YEARS. " then where did Bryan get all those Homeland Security budget cuts that he post all the links to where Bush cut this and Bush cut that? Man you guys want it both ways don't you?

I don't want anything both ways. I'm not sure what Bryan was saying in another thread. But you make a good point, BigD. You'd think with all this deficit spending at least we'd have sealed the boarders and feel secure. Where's Osma? And anybody remember the antrax mailer? With all these taxes paid to Republican Washington politicians, you'd think nothing was being cut and we'd have maybe caught one of these two guys.

Bush has pledged to cut in half the deficit he created. Great. That's like a crack addict saying he'll cut back. Why can't these politians live within their means? With Reagan's colossal deficits and now Bush II's, the republicans are fast becoming the party of fiscal irresponsibility.

And four years ago, Bush promised me I could put my own social security aside and not have to pay for the cry-Baby Boomers. He said the exact same thing again in these debates!!!! I think he just wants my vote again. Not only did he not pass the law, but he gave another huge entitlement program to the Boomers so they don't even have to pay for their drugs. This government just keeps getting bigger and bigger.

 

[aNoodle]

Deleted....it posted twice....that's wierd.

 

[epj3]

What if we put our defense money into homeland security... then really it would more than balance itself out. Billions towards iraq or billions to keep our country safe at the border... Which one would be more effective? I have a feeling the latter. Again, that's just me. I've only been alive for 18 years.

 

[aNoodle]

epj3 for president!

Actually, I think the president is the only office with a higher age requirment...35 i think. So.....epj3 for congress!

 

[skandalous]

epj3 for president!

Actually, I think the president is the only office with a higher age requirment...35 i think. So.....epj3 for congress!

Then vote Libertarian next month if you like what Eric said. There's not just 2 people running for president.

 

[epj3]

Then vote Libertarian next month if you like what Eric said. There's not just 2 people running for president.

Yea do a write in. I'm not qualified for the job anyways.



Though, turns out you don't have to be

 

[Average Jae]

the 47.5% only works out if you spend every penny you make. and as they say, if you don't like it get out! i'm kidding.. besides, if you dun wanna pay taxes, there are alternate cash only business you can indulge yourself in..

but there are also write offs, like you are prolly getting a break for owning a home on your income tax, while paying the property tax..

 

[aNoodle]

the 47.5% only works out if you spend every penny you make. and as they say, if you don't like it get out! i'm kidding.. besides, if you dun wanna pay taxes, there are alternate cash only business you can indulge yourself in..

but there are also write offs, like you are prolly getting a break for owning a home on your income tax, while paying the property tax..

True. Well if you want to get at an effective rate of all the taxes, you can just add up all the taxes you paid in a year and divide by your income.

But you can't add up the percentages. If you buy something at the mall, the sales tax applies, not the property tax. In many places, groceries are not taxed at all. And when you buy utilities you pay the utility tax not the sales tax or the property tax. To throw 6%, .9%, and 7% together is just misleading. Social Security cuts off entirely on earnings after something like $76,500...or used to when i was working. As you pointed out Jae, the federal income tax rate has a bunch of standard and itemized deductions off the percentage. The point is well taken...we pay a lot in taxes. But the numbers here are crap....perhaps meant to raise FEAR FEAR FEAR FEAR FEAR. The devil is always in the detail.

 

[indy_85stariones]

True. Well if you want to get at an effective rate of all the taxes, you can just add up all the taxes you paid in a year and divide by your income.

That is how I arrived at these percentages. I added up the taxes paid in each category and divided by my income.

Yes, I included my itemized deductions as you notice that 14.5% federal income tax does not fit into any tax bracket.

Yes, some taxes are based upon so many cents for a gallon of gas, so I used an average of $1.85 per gallon in my calculations. I don't smoke, so I didn't include cigarette taxes.

Yes, we pay federal and state income tax on top of the amount paid towards social security and medicare -- well, 1/2 of it anyway.

Yes, my mistake, the state sales tax should have been calculated against my disposible income, instead of total income...
((100 - (47.5 - 6) / 100) * 6 equals 58.5 / 100 * 6 equals 3.5%

So, my total tax payments make up 45%, instead of 47.5%. Whether 40% or 45% or 47.5%, I would say that these percentages are in the neighborhood of what the typical tax payer would pay.