To: eeman
"Our top federal rate is 36%. The Feds start phasing out deductions at around $160,000 per individual return. Therefore, the top rate rate really becomes around 40%." No, that's not how it works. Your top possible tax rate doesn't go UP when you phase out deductions. Deductions only LOWER your tax rate.
Also, your numbers are out of date.
Old pre-2001 U.S. Tax Code |
|
|
Single |
Single |
$0 |
$27,050 |
15% |
$0 |
$6,000 |
10% |
$27,050 |
$65,550 |
28% |
$6,000 |
$27,050 |
15% |
$65,550 |
$136,750 |
31% |
$27,050 |
$136,750 |
25% |
$136,750 |
$297,350 |
36% |
$136,750 |
-- |
33% |
$297,350 |
-- |
39.6% |
11 posted on
12/23/2002 8:11:28 AM PST by
Southack
To: Southack
I appreciate your explanation about the additonal taxes. If you read my post more closely, I was wondering if there were additional taxes that were not mentioned in the original post. Your post is very informative about those additonal taxes.
What I do not appreciate is your obnoxious insult. There is nothing implying that I think that we should have government run/financed healthcare healthcare or that healthcare should be "free."
12 posted on
12/23/2002 10:28:11 AM PST by
eeman
To: Southack
Thank you for supplying the tax table. I respectfully diagree with your assertions about deductions, however. In the current tax scheme, itemized dections start phasing out incrementally as your income rises above 129,000. Similarly, personal exepmtions start phasing out. If you cannot use the deductions, they cannot lower your taxes. Thus you end up paying more taxes. This is equivalent to being bumped into a higher marginal rate but without telling you.
13 posted on
12/23/2002 10:44:32 AM PST by
eeman
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