How Much Do You Pay in Taxes

[spidey07]

I like to think we're already in the creamed camp.

Nope. It's only going to get much, much worse. Hold onto your wallets people, don't spend. Obama's coming.

 

[ProfJohn]

25% of my pay check goes to some kind of tax.

I end up getting perhaps 3-5% back tax return time so at least 20% of my income is going to income or payroll taxes.

I would also guess that 5% of my take home goes to taxes of some kind via sales, gas or property taxes etc etc.

So most likely 25% of my income goes to the government.

 

[dullard]

My guess is:
$45,000 = 60% x Salary

$75,000 = Salary

I think you are a bit low.

Lets assume $5000 in property tax, 40% federal tax (income tax + payroll tax, assuming the worst case scenario of a self-employed person and all income being earned income), 8% state/local income tax, 10% federal/state/local sales tax and spending nearly every dime earned on taxable goods, and $25k of deductions/deduction equivalents of credits.

Then the salary would be $90000.
* Property tax: $5000.
* Federal income tax: ($90000-$25000)*.25 = $16250
* Federal payroll tax: $90000*.15 = $13500
* State/local income tax: ($90000-$25000)*.08 = $5200
* Federal/State/local sales tax: ($90000-$45000)*.10 = $5005
* Total: $45000.

Of course, I estimated a fairly high tax rate for everything (especially sales tax where I assumed everything was spent on taxable goods and not on things like a mortgage). If he has lower tax rates for any area, then the salary is higher (it could easilly be in the ~$120k range). At double the typical national income, that is pretty close to being a HENRY.

I do love the inclusion of payroll taxes in taxes that the OP pays, but then the OP ignores payroll taxes paid by other people. Silly P&N posters.