Taxes drop to lowest level in 60 years
Posted 08 February 2011 - 09:52 AM
How many American actually know this statistic?
Posted 08 February 2011 - 09:56 AM
Posted 08 February 2011 - 10:01 AM
Posted 08 February 2011 - 10:11 AM
percentage of income
i don't think i get your angle.
you talking about tax brackets or what?
the brackets are essentially the same right now from 2003.
Posted 08 February 2011 - 10:27 AM
To take an example, suppose your taxable income (after deductions and exemptions) was exactly $100,000 in 2008 and your status was Married filing separately; then your tax would be calculated like this:
( $ 8,025 minus 0 ) x .10 : $ 802.50
( 32,550 minus 8,025 ) x .15 : 3,678.75
( 65,725 minus 32,550 ) x .25 : 8,293.75
( 100,000 minus 65,725 ) x .28 : 9,597.00
Total: $ 22,372.00
This puts you in the 28% tax bracket, since that's the highest rate applied to any of your income; but as a percentage of the whole $100,000, your tax is about 22.37%.
This next calculator lets you try it out with your own numbers:
Tax Year: 200020012002200320042005200620072008200920102011
Filing Status: SingleMarried filing jointlyMarried filing separatelyHead of household
Taxable Income: $
...as a percentage of income: %
Tax Bracket: %
"Taxable Income" here is really Regularly Taxed Income minus Adjustments, Deductions, and Exemptions.
Payroll Tax (Social Security and Medicare), and Qualified Dividends and Long Term Capital Gains are separate calculations.
See this Tax Calculator for more.
Tax Hikes, Tax Cuts
1993 saw a tax hike on the wealthy (via two new brackets at the top), and then 2001 through 2003 saw a series of tax cuts that lowered the tax brackets as follows:
1992 1993 -
2000 2001 2002 2003 -
2010 2011 -
15% 15% 15% 10% 10% Same
15% 15% 15%
28% 28% 27.5% 27% 25% 25%
31% 31% 30.5% 30% 28% 28%
36% 35.5% 35% 33% 36%
39.6% 39.1% 38.6% 35% 39.6%
From 2000 to 2002 most brackets dropped by one percent, and there was a new low bracket added for the "lucky duckies" at the very bottom. In 2003 most brackets got an additional cut of two percent with a special gift for the "other" lucky duckies, the ones at the top. But note that the rich still paid more in 2003, and everybody else paid less, than was the case in 1992. Now if we could just balance the budget...
Future Tax Rates
As of early 2009, the plan for the future was to leave the lower tax brackets alone, and raise the top two brackets to where they were during the 1990s. The cutoffs for the top brackets were to be raised, so that singles making above $200,000 annually, or families making above $250,000, would be the ones affected by the higher rates.
As of August 2010, Congress still hasn't made those changes legal. If Congress doesn't act before New Year's, all brackets will automatically revert to where they were in 2000, meaning a big tax increase for everybody. But hopefully Congress won't really do nothing, they'll just follow the path of least political resistance, and temporarily freeze all brackets at their current levels until after the 2012 elections. (You heard it here first!)
(Update, December 2010: The prediction above came true! All tax brackets will be frozen through 2012.)
Posted 08 February 2011 - 10:37 AM
married filing sep- 100k puts you in the 28% bracket. a % of that 100k for tax is 22.37.
same scenario for 2010= 22.12.
Posted 08 February 2011 - 11:03 AM
I thought Obama was gonna raise taxes :icon_bs:
Difference between tax rate and tax revenue apparently escapes you.
Tax Revenue is down because the base of income (due to unemployment, corporate profits down, etc...). It is not due to lowering the tax rates.
Posted 08 February 2011 - 11:24 AM
Posted 08 February 2011 - 11:31 AM
Posted 08 February 2011 - 03:45 PM