informationliberation
The news you're not supposed to know...




An Introduction to Austrian Economics: Understand Economics, Understand Everything
The Century of the Self: The Untold History of Controlling the Masses Through the Manipulation of Unconscious Desires
The Disappearing Male: From Virility to Sterility

The Obama Deception: The Mask Comes Off
Operation Gladio: The Hidden History of U.S. Sponsored False Flag Terrorism in EuropeThe New American Century: The Untold History of The Project for the New American Century
(more)
Article posted Feb 27 2007, 1:13 PM Category: Economy Source: MSN Money Print

Your real tax rate: 40%

By Scott Burns

Income taxes, sales taxes, property taxes, Social Security and Medicare taxes, 'sin' taxes and the rest add up to a virtual flat tax nationwide.

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%.

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.

That's not a big range, particularly when you notice that it covers an income rise of 2,500%.

So I have a modest proposal: Ask your senators or representative if they have a clue about this. If they donít, regardless of party, they shouldn't be in office. Vote accordingly.






Latest Economy
- Cost of Renouncing US Citizenship Goes From Free In 2010 to 450$, And Now It's Been Jacked to $2,350
- Colorado's Illegal Pot Market Thrives
- Neighborhood Bully - America Recklessly Throws its Weight Around
- Doug Casey on the Phil Donahue Show (1980/1981)
- Yellen: Where No Man Has Gone Before
- Block on CNBC: Privatize the Roads
- Burgeoning Regulations Threaten Our Humanity
- How Government Forces the Poor Into Black Markets









Comments 1 - 2 of 2 Add Comment Page 1 of 1
happycitizen

Posted: Feb 28 2007, 10:53 AM

Link
207200 I don't think we're paying enough. I mean, I think I speak for ninety percent of the American Sheople when I say that we should drop our pants and pay more with humility to our great government who works so hard at keeping us safe and happy. After all; without them, we wouldn't have all the things that are important to us: Walmart, McDonalds, video games, and Sponge Bob. Oh, .....and SUVs too.
globalstomp

Posted: Mar 12 2007, 11:56 PM

Link
Happy citizen you speak for yourself and no one else hell you can barely speak for yourself.


Add Comment
Name
Comment

* No HTML


Verification *
Please Enter the Verification Code Seen Below
 


PLEASE NOTE
Please see our About Page, our Disclaimer, and our Comments Policy.


FAIR USE NOTICE
This site contains copyrighted material the use of which in some cases has not been specifically authorized by the copyright owner. Such material is made available for the purposes of news reporting, education, research, comment, and criticism, which constitutes a 'fair use' of such copyrighted material in accordance with Title 17 U.S.C. Section 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. It is our policy to respond to notices of alleged infringement that comply with the DMCA and other applicable intellectual property laws. It is our policy to remove material from public view that we believe in good faith to be copyrighted material that has been illegally copied and distributed by any of our members or users.

About Us - Disclaimer - Privacy Policy



Advanced Search
Username:

Password:

Remember Me
Forgot Password?
Register

Tucson Cop Leaves Photographer Hospitalized after Claiming he was Blinded by Flash - 09/19Withheld Evidence Will Cost Los Angeles Cops - 09/19This Week's Corrupt Cops Stories - 09/18Man Calls Cops To Report Vandals At His Home, They Show Up And Kill Him - 09/18Austin Police Officer Tries To Paint Police Accountability Groups As 'Domestic Extremists' In FOIA'ed Emails - 09/18Delaware Court Overturns Hearsay Traffic Stops - 09/18"You Have The Right To Shut Up": Police Raid Tavern, Lock Doors, Forcibly Search Dozens of Patrons - 09/17Government Seeks To Steal Elderly Car Crash Victim's Home Over Single Missed Property Tax Payment - 09/17

Rialto, CA Police Made to Wear Cameras, Use of Force Drops by Over Two-ThirdsCop Who Karate Chopped NY Judge In Throat Gets Off Scot-FreeFlorida Cop Smashes Compliant Woman's Face Into Car -- "Maybe Now You Can Understand Simple Instructions"VIDEO: Lapel Cam Reveals A Day In The Life Of A U.S. Police Officer (Tasing, Beating, Breaking & Entering, Stomping On Heads... and Laughing About It)Caught On Tape: Officer Sucker Punches Inmate In Face, Files Report Claiming 'Self Defense'Insult Person On Twitter, Go To JailSWAT Team Brings TV Crew To Film Raid Against Threatening Internet Critic -- Raids Innocent Grandma InsteadCop Karate Chops NY Judge In The Throat
(more)

 
Top