At a glance, this appears to ignore 'payroll tax'/'self-employment tax',
aka 'FICA'/'Medicare'. For low to mid incomes, this can dominate taxes
paid. For higher incomes, due to the drop off of FICA, it drops as a
percentage. A fact that many people forget is that FICA and Medicare
are double what shows up on a paystub since the employer pays an equal
amount that could have been pay. Self-employed people now pay all of
that directly. For 2001, FICA is 6.2% and Medicare is 1.45%. That's
15.3% total with no deductions or other allowances until the cap on FICA
at $80,400+ of income (4984.80 of FICA tax).
http://www.jonescpa.com/fica.htm
sdw
Dave Long wrote:
>
> [Sorry all, this is a followup in correction
> to a message that seems to be stuck in limbo
> at fork@kragen.dnaco.net. -dl]
>
> I misspoke earlier. If that 236K AGI had been
> in 1998, it would have been in the top 1.7% of
> all returns.
>
> It turns out the IRS has to prepare reports yearly
> on returns above 200K, and in:
>
> <http://ftp.fedworld.gov/pub/irs-soi/98hiinco.pdf>
>
> they have an interesting table which shows the
> effective tax rate versus AGI. Looks like both
> the mode and median rates for effective federal
> tax are between 5 and 10%.
>
> All returns $200+ AGI
> ----------- ---------
> number of returns 124,770,662 2,085,211
>
> no US income tax 22.6 0.1
> with US income tax 77.4 99.9
>
> Under 5% 15.1 0.6
> 5 under 10% 29.4 0.8
> 10 under 15% 21.8 2.3
> 15 under 20% 8.4 12.9
> 20 under 25% 2.0 37.6
> 25 under 30% 0.6 29.4
> 30 under 35% 0.2 13.3
> 35 under 40% 0.1 3.0
> 40 under 45% - 0.1
>
> 45 under 50% - -
> 50 under 60% - -
> 60 under 70% - -
> 70 under 80% - -
>
> 80% or more - -
>
> -Dave
-- sdw@lig.net http://sdw.st Stephen D. Williams 43392 Wayside Cir,Ashburn,VA 20147-4622 703-724-0118W 703-995-0407Fax Dec2000
This archive was generated by hypermail 2b29 : Sun Apr 29 2001 - 20:25:48 PDT