Let's examine this falacy: Your prototypical family earn $50K per year. According to Tax Stats for the 2003 tax year, filers earning from $30K to $50K paid an average of 6.8% of their gross as income tax. Filers earning from $50K to $75K paid 8.8% of their gross as income tax. Clearly, the prototypical $50K filer paid no more than 7% to 8% of their gross as income tax. Presuming that $50K filer earned all income from wages, they paid another 7.5% in FICA taxes. That brings the total tax burden for the prototypical $50K filer to no more than 15.5%; take home pay is $42,250.
If they bring the entire gross home under the FairTax, they will see a take-home pay increase of 18% ... not the 30% you keep falsely presenting. You again are confusing (perhaps purposefully) marginal tax rate with effective tax rate.
Dimples I am not confusing at all you are.
first I state in my own post about net tax rates and marginal tax rates and after doing my $129 calculation based not on net returns after filing on April 15th but on take home pay.
You see what you take home and what your net effective rate are differnet.
Net Effective rate is after you file your taxes and most Americans get a refund.
Most Americans have a 15% tax rate deducted from their salary based onthe marginal rate tables for payroll.
Now it is you who is misleading; You see after you do the take home pay calcualtion you ten need to add in the prebate for our family at $50,000 to get the net tax rate or effective tax rate.
And you also forgot to add in the 7.65% payroll tax.
The top 50% of 2003 taxpayers paid an average rate of 13.35% in taxes as of updated Oct. 05 figures. That represented income of $29,019 and up so that it is clear the 15% figure used by merrillbender is right on the money and yours is not. As income raises the rate also increases to a point of an income of $57,343 the average rate is 15.38% which once again tallies with merrillbender and not you.
So your "analysis" attempting to overturn his postings is just more of your misinformation. The takehome he presents seems just fine - yours certainly does not.
The figures from the Tax Foundation above do not include the 15.3% payroll taxes; merely income tax. Or, to put it another way ... you're wrong!!