Your real tax rate: 40%

MSN Money ^ | 2/21/2007 | Scott Burns

[Smogger]

I thought I would throw this out there for the "flat-taxers"

[RockinRight]

I know this much - my paycheck is about 63% of what my actual gross income is.

[theDentist]

I recall reading somewhere oh-so-long-ago that it's closer to 48% when you add in local taxes, state taxes, fees (required and otherwise), etc.

[bcsco]

Ping for reference.

[edcoil]

"Your real tax rate: 40%"

At the fed level then tack on state, sales, utility and you get past 40% very quickly.

We are the most taxed, less serviced generation in American history.

[Rome2000]

Add in all the money you pay in insurance premiums so lawyers can use their license to steal and it turns out you're paying a 10-15% lawyer tax on top.

[lovecraft]

Yep, and then add your sales taxes for the stuff you buy, any fees for gov't services (car tags, etc.), any property taxes, car taxes, licensing fees, gas tax, alcohol tax, cigarette tax...lions and tigers and bears, oh my....

[groanup]

Pushing 50% of what we make. How would the colonialists react to that?

[trappedinnj]

Well, with NJ's highest property taxes in the country, Im guessing I can add 10% to that fifure.

[untenured]

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.

If I understand this right, 40% is not the marginal rate on the last dollar earned. It's the actual percentage of income taken, which makes it even worse.

[RC2]

I've told you folks that the graduated tax is meant to keep you broke so you can't fight the government. Now figure out why they need all this tax money and you won't find an answer. Except that they just want it.

[Einigkeit_Recht_Freiheit]

Makes me feel a bit better about what I pay here in Germany.

By the way: thanks for your help with the defense thing.

[bondjamesbond]

Politicians talk this way because they generally talk about only one tax: the federal income tax, which offers graduated rates from 10% to 35%.

Well, if the tax code is offering me 10%, I'll take some of that!

[EagleUSA]

You really want to RUIN YOUR DAY??

Sit down and add up EVERY tax you pay and on what. You will be shocked. I did it. In my last exercise I computed that 63% of my gross income went to taxation of all forms.

TAX, TAX, TAX. And the socialists want more.

[metesky]

And don't forget that the price of everything you buy from Advil to Zinc is about 50% taxes, except for cigarettes which are about 85% taxes.

[OrangeDaisy]

We should be thankful [sarcasm]. I did a study on Finland last year, and they pay about 60% of their income in taxes. I'm guessing most Euro countries pay about the same rate. The same will happen to us if we go to socialized medicine.

[bondjamesbond]

Well, with NJ's highest property taxes in the country, Im guessing I can add 10% to that fifure.

But don't worry! Governor Corzine is going to take some of your money out of one pocket to put it in another, while retaining only the teeensy-weeeensiest portion to cover expenses...

[OrangeDaisy]

Taxes on Phone and Internet Service are some of the most ridiculous. Everybody and his brother gets their chunk!

[kawaii]

50% money

[the_Watchman]

Read to Genesis 47:24-25

Joseph has cornered the market on grain during the seven good years of harvest. The Egyptians run out of money buying it back during the seven bad harvest years. Eventually, Joseph as the agent of Pharaoh, owns them lock, stock, and barrel.

Look at the terms: Joseph exacts a tax of 20% and allows them to keep 80%.

Their response [KJV]: We will be your slaves!

As slaves, they were happy to pay 20% taxes. What does that make us?