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Today I added up all the tax I pay

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Question for everybody... What percentage of your income reaches your paycheck? For me it's 67-68%. A little less with the correct state withholding, and a lot less if 4.6% "pay cut" from furloughs is included.
 
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Throckmorton said:
Question for everybody... What percentage of your income reaches your paycheck? For me it's 67-68%. A little less with the correct state withholding, and a lot less if 4.6% "pay cut" from furloughs is included.
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Where are pensions being classified? Take home income?
 
Throckmorton said:
Huh? I said I'd like to get to be one of those mythical non-taxpayers that Republicans are always talking about.

Yep, we are on the short end of the stick. Why? Why are we penalized for not getting somebody knocked up and buying a house we can't afford?

And what exactly do you not believe? Do you think I pay less tax than I say? I'll post my W2 when I get it next year. Do you want to see a picture of my paycheck?
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You heard the Rich Republicans on here.

Best bet is to leave the country.

Let the Rich Republicans figure out to serve their own rich asses.
 
Count up all the gas tax!
If you could afford to buy a house you could deduct Insurance and state taxes. Of course you would have to pay property tax first. No education Credits?
 
I would double that number if I were you. You are forgetting sales, excise, services and utilities taxes. Basically you're only counting when you earn it, not when you spend it which everything is taxed.

I pay every quarter $14,000 just in SS deposits for my employees so I don't feel bad.
 
Throckmorton said:
Question for everybody... What percentage of your income reaches your paycheck? For me it's 67-68%. A little less with the correct state withholding, and a lot less if 4.6% "pay cut" from furloughs is included.
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About 71% in net pay. And again thats with 4 federal deductions.

You didnt say, but I assume you have only one deduction on your W4. What I dont understand is when you go to do your taxes how you are going to meet your tax bracket with only 8% withheld?
 
Zebo said:
I would double that number if I were you. You are forgetting sales, excise, services and utilities taxes. Basically you're only counting when you earn it, not when you spend it which everything is taxed.

I pay every quarter $14,000 just in SS deposits for my employees so I don't feel bad.
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Pay them less and that's what you call a problem that takes care of itself.😛
 
mattpegher said:
About 71% in net pay. And again thats with 4 federal deductions.

You didnt say, but I assume you have only one deduction on your W4. What I dont understand is when you go to do your taxes how you are going to meet your tax bracket with only 8% withheld?
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I'll owe $770 to the feds according to the IRS tax calculator.
 
Throckmorton said:
I'll owe $770 to the feds according to the IRS tax calculator.
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Thats still only about 12%. Your tax bracket is supposed to be 25%.
What deductions do you have. When I was single and making about the same I was paying about 25% to the feds. How are you getting away with less?
Are the tax brackets a falacy?
Does this seem odd to anyone else?
 
mattpegher said:
Thats still only about 12%. Your tax bracket is supposed to be 25%.
What deductions do you have. When I was single and making about the same I was paying about 25% to the feds. How are you getting away with less?
Are the tax brackets a falacy?
Does this seem odd to anyone else?
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I calculate his effective tax rate at 10%. If OP were married with 2 kids he'd be getting back $6k refund.

http://turbotax.intuit.com/tax-tools/calculators/taxcaster/
 
mattpegher said:
Thats still only about 12%. Your tax bracket is supposed to be 25%.
What deductions do you have. When I was single and making about the same I was paying about 25% to the feds. How are you getting away with less?
Are the tax brackets a falacy?
Does this seem odd to anyone else?
Click to expand...

Are you accounting for the progressive nature of the tax brackets? ie: the first $8,500 of his income is taxed at 10%, then from $8,500 through $34,500 is taxed at 15%. Only his income over $34,500 is taxed at 25%, and that's very little of what he's earning.
 
eskimospy said:
Are you accounting for the progressive nature of the tax brackets? ie: the first $8,500 of his income is taxed at 10%, then from $8,500 through $34,500 is taxed at 15%. Only his income over $34,500 is taxed at 25%, and that's very little of what he's earning.
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Shit, it didnt seem to work that way when I was making 24k. Maybe it did, and I just dont remember getting the money back.
 
mattpegher said:
Shit, it didnt seem to work that way when I was making 24k. Maybe it did, and I just dont remember getting the money back.
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Yeap, that's actually how it's always worked, it's a pretty vital part of the tax system to make sure that there is always incentive to earn more money.

If all of your income shifted to the higher tax bracket as soon as you got into it, that would mean that people would actually take home less money for making a dollar more in income than had they called in sick that day. Obviously we don't want something like that, so the taxes only apply to all new income over X dollar amount.
 
mattpegher said:
Thats still only about 12%. Your tax bracket is supposed to be 25%.
What deductions do you have. When I was single and making about the same I was paying about 25% to the feds. How are you getting away with less?
Are the tax brackets a falacy?
Does this seem odd to anyone else?
Click to expand...
Bush and the Republican Congress lowered rates and raised deductions across the board. People near the bottom earning the same money with the same exemptions and deductions don't pay nearly what they did twenty years ago.

I think eventually we'll have to go back to pre-Bush rates and even higher rates at the top. But first I want to see Congress and the White House actually spend less money. Tax increases with promised spending cuts are just tax increases with increased spending.
 
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