Openmind
Well-Known Member
Re: Dems: highest 2% of earners,who already pay 50% of all incm taxes, must pay even
And you took the $300,000 as being NET income, right? After you deduct your "dependents," and your "expenses" and your "interest on mortgage" and your "business expense" and your "home office" etc. . .. . .you only really pay tax on about $180,000 if you really make $300,000 gross!
It is true also for the guy making $40,000. . .but his "interest of mortgage deduction" is probably non-existent, because he probably can't afford to purchase a home, and his business expenses are probably nul, so HIS deductions are MUCH lower than the other guy. . .
As I said before, this was an exemple. . .never pretended to be a nit picking accurate numbers!
Federal tax isn't the only tax on the payroll.
You should always include the FICA tax when making comparisons.
Income: $300,000
Income tax liability: $83,897
% of income: 27.97%
Medicare portion of FICA will be $4,350.00
Social Security portion of FICA will be $6,621.60
Total payroll tax liability: $94,868
% of income: 31.6%
Income: $40,000
Income tax liability: $6,125
% of income: 15.31%
Medicare portion of FICA will be $580.00
Social Security portion of FICA will be $2,480.00
Total payroll tax liability: $9,185
% of income: 23%
Source: http://www.calculatorpro.com/fica-tax-calculator/
That calculation is somewhat less progressive.
And you took the $300,000 as being NET income, right? After you deduct your "dependents," and your "expenses" and your "interest on mortgage" and your "business expense" and your "home office" etc. . .. . .you only really pay tax on about $180,000 if you really make $300,000 gross!
It is true also for the guy making $40,000. . .but his "interest of mortgage deduction" is probably non-existent, because he probably can't afford to purchase a home, and his business expenses are probably nul, so HIS deductions are MUCH lower than the other guy. . .
As I said before, this was an exemple. . .never pretended to be a nit picking accurate numbers!