#1 Govt Will Take Almost Half Your Paycheck in 201308-21-2012, 05:42 PM
Government Will Take Almost Half Your Paycheck in 2013
How high is the marginal tax rate on each additional dollar the average American earns? In other words, if you got a raise of one dollar, how much of that dollar would be taxed away? These rates are already high, and they’re getting higher next year.
A middle-class taxpayer’s income is subject to a 25 percent federal income tax. Then there is the federal Social Security and Medicare payroll tax of 13.3 percent in 2012—5.65 percent of that is removed from the employee’s paycheck, and the remaining 7.65 percent is paid by the employer. (In reality, the employee pays the entire 13.3 percent, because the employer’s portion of the tax does not affect the cost of labor: The employer would pay the employee 7.65 percent more if there were no employer’s portion of the payroll tax.)
So the 25 percent federal income tax plus 13.3 Social Security and Medicare payroll taxes equals 38.3 percent going to federal taxes in 2012.
And then there are state taxes. According to the Tax Foundation, the average state’s income tax rate for the middle-class taxpayer is 4.82 percent, which brings the total to 43.12 percent in federal and state taxes. And it’s going higher, thanks to the nearly $500 billion in tax increases for 2013 that some have called Taxmageddon. In January of next year, the federal income tax rate for middle-class taxpayers is scheduled to rise from 25 percent to 28 percent, and the payroll tax is scheduled to rise from 13.3 percent to 15.3 percent. This drives the marginal tax rate based on the aforementioned three taxes to 48.12 percent. Add in state and local property, corporate, excise, and other state and local taxes, and the percentage of each additional dollar that is taxed hovers around 50 percent.
When half of each additional dollar earned is taxed away, taxpayers experience a disincentive to start businesses or expand existing ones. This leads to fewer jobs being created.
It is outrageous that any dollar earned by a middle-class taxpayer would go as much to taxes as to supporting the taxpayer’s family. The government didn’t earn the taxpayer’s paycheck and shouldn’t be entitled to it.
See the table below to see how your state compares to the national marginal tax rate of 43.1 percent in 2012 and 48.1 percent in 2013.
Plus of course, theres going to be an enormous glut of elderly patients as more and more people retire. At the same time there will fewer and fewer primary care doctors ... fewer and fewer specialist doctors as 0bamacare slashes Medicares re-reimbursement rates to doctors, nurses and nursing homes to help pay for 0bamacare. He's already taken $716B out of Medicare. And if you like it (Medicare), well ... too bad. You cant keep it. 0bamacare will be the only option.
Makes sense congress (or regress) and the president exempt themselves from this monstrosity doeasnt it?
Liberalism is just communism sold by the drink.
08-21-2012, 09:09 PM
- Join Date
- Nov 2010
- Peoples Democratic Socialist Republic of Michiganistanovia
Well, just do as politicians and political appointees (on both sides of the aisle) do and cheat as much as you feel safe in doing.
Expand those charitable contributions a bit. Add a few hundred or thousand to "professional fees".
If you are self employed, cut the rate you pay yourself down to minimum wage (or almost) and pay the rest to yourself as dividends and save at least on the FICA 15+%.
If you get audited, claim ignorance and offer a reduced amount settlement. They will probably go for it.
Face it, if you play the game by their rules, you are financially fucked. And that is what they are counting on.
08-21-2012, 09:38 PM
I have a feeling we pay more than they are showing.
Fuel tax, drivers license fees we have a 20% fee on cell phone bills so they can hand out welfare phones that isn't even called tax, it's on top of cell phone tax, liqueur tax, cigarettes, special taxes for medical tests.
Last edited by Rockntractor; 08-21-2012 at 09:44 PM.The difference between pigs and people is that when they tell you you're cured it isn't a good thing.
08-21-2012, 10:15 PM
- Join Date
- Mar 2010
Wow! Between taxes and insurance, it's hardly worth getting up in the morning.
08-22-2012, 03:04 AM
I remember my grandfather's complaints 35 years about about the FET on new tires!
The Federal Excise Tax on tires has been around since the 1930s. Normally, excise taxes are referred to as "luxury" taxes, though how truck tires can be considered a "luxury" to a fleet, we don't know.
08-22-2012, 01:15 PMIt's not how old you are, it's how you got here.
It's been a long road and not all of it was paved.
A man is but a product of his thoughts. What he thinks, he becomes. Gandhi
|« Previous Thread | Next Thread »|