The value of the dollar

[romeothemonk]

Last year I made ~ 58k, and I ended up paying an effective income tax rate of 6.13%.

I expect to have made a little more this year, but I expect an effective income tax rate of 5%.

The US government allows me to choose whether I want to give them money to distribute to those it deems in need, or give to charity, to the people I deem in need. I will always choose to give to charity.

Even in Yankton SD, 80k a year family income is puts you in the 95-97% for income. We have the haves and the havenot's in town.

[Matrix]

quote:Originally posted by romeothemonk

Last year I made ~ 58k, and I ended up paying an effective income tax rate of 6.13%.

I just told this to my wife, who got very jealous. We're at approx. €27.5k paying around 30% tax.

[Tubby Rower]

In 2005 I had $3,554 total tax with $64,286 total income. => 5.52 %
in 2006 I had $2,611 total tax with $69,757 total income. => 3.74 %

We had Ethan in 2006 so that was $1000 directly off of the total tax.

For this year with some estimation and some exact numbers. My estimations are conservative so the total tax should decline some. We bought a house and I couldn't remember what the points we paid on the mortgage were so I just left those out.
in 2007, $4,529 total tax with $70,963 total income => 6.38%


We have extremely high deductions due to giving > $10k to charities, $5k in mortgage interest (it'll be more now) and ~ $3k in state tax. This year other deductable things came up and we're likely to have ~ $25k in deductions.

[barbu1977]

Shouldn't what is payed in charities and in state tax be considered as income tax?

[grahamiam]

@barbu: that's not income (tubby didn't earn it), he donated it. You are allowed to deduct donations, which lowers to taxable income. State tax paid is also a deduction from Federal taxable income.

quote:10 percent up to $40,000, 15 percent between $40,000 and $150,000 and 30 percent above $150,000.

Still, looking at the above quote from Guilliani's plan, the above examples just prove that this won't really save normal, middle income families any money. What it really does is increase the bottom and middle (Tubby and Romeo would now pay 10% instead of ~5%) while lowering the top (goes from 35% to 30%). Washington Times reviewed it and concluded that it would reduce Gov't Income much more than making Bush's cuts in 2001/2003 permenant (~2x as much). Thus, he would likely increase the debt percentage even faster than Bush did, which would further stress the value of the dollar.

[barbu1977]

quote:Originally posted by grahamiam

@barbu: that's not income (tubby didn't earn it), he donated it. You are allowed to deduct donations, which lowers to taxable income. State tax paid is also a deduction from Federal taxable income.

But what I'm saying, is that what you save from making those donations should be included in the taxation you are paying, since at the end of the year the governement won't pay those people to give service to the population since you did pay for those services. (in Quebec, and from what I understand many western European countries, the taxes are generaly higher since the governement will give that money to the neady instead of the charities)

Also, for global comparaison purposes, the taxation level should include what is payed in state taxes. Since depending on where you live, the state/province will take care of different things.

Anyways, that was just to put Kingreno's 30% tax in perspective. Not to talk about Rudolf's plan.

[grahamiam]

Ah, I see. In PA, we pay 3.2% income tax to the state, and then there's also a local township tax. My township charges 1% and it will be different in other townships within the state. You could also argue that what I pay for water, sewage, garbage removal, health care, etc. should also be included, as those other goverments probably include that in thier taxes as well.

[Pastorius]

Last I calculated my taxrate was during Crimbo, but I vaguely remember it being something near 30%.

Now, I really ought to calculate properly, since the last time I did, I did so only to have something to deliver to my employer in time to avoid a 50% taxation - which happen to people who dont deliver their paper on time...


BTW, stop using USD and Euro calculations, and start listing your numbers in NOK. Saves me some time from having to open the calculator app. [lazy]

[Pastorius]

Romeo, does your wife not work?

And Matrix, are both of you still studying?

[barbu1977]

Well I guess that we can indeed conclude that no comparison are valid!!

Just for the fun of throwing in numbers, my paycheck has 34% of it going in taxes and different programs. Then I can get deductions at the end of the year. (equivalent of 401k, babies, charities, political parties, etc.) I also have to pay a city realstate tax that is based on my proprety value (for garbage, water, sewage, snow, police).