The J
Senior Member
Joined: Dec 18, 2010 11:01:13 GMT -5
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Post by The J on Jan 8, 2011 23:03:55 GMT -5
Every year, it is described which date the average US taxpayer has worked for his/her/its share of taxes. That date is somewhere in early June as I recall - more or less. ie, the average tax burden for taxpayers in the US is in the area of ~45%. I'm surprised more YM posters don't know what their marginal fed tax rate is, apparently. That whole issue has no relevance to the various deductions in any year, or what kind of check was written to the IRS. If only Commentator were here to discuss this. Alas! Most know what their marginal rate is. However, we're discussing our effective rate here, which is ALWAYS lower than the marginal rate. |
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lurkyloo
Junior Associate
“Time means nothing now,” said Toad. “It is just the thing that happens between snacks.”
Joined: Jan 8, 2011 11:26:56 GMT -5
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Post by lurkyloo on Jan 8, 2011 23:55:54 GMT -5
Ugh. I was much happier before I calculated that. I need to either quit my job or divorce my husband.  Regarding effective vs marginal: they're important in different ways. Effective is nauseating and causes me to get heavy into tax planning; marginal (33% federal + 9.25% CA + 7.65% FICA) makes me think my time is way better spent researching ways to reduce money spent than working harder to get a raise! |
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Deleted
Joined: Nov 22, 2024 2:37:47 GMT -5
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Post by Deleted on Jan 8, 2011 23:59:55 GMT -5
He said share of taxes... not share of federal income taxes...
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lurkyloo
Junior Associate
“Time means nothing now,” said Toad. “It is just the thing that happens between snacks.”
Joined: Jan 8, 2011 11:26:56 GMT -5
Posts: 6,164
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Post by lurkyloo on Jan 9, 2011 1:31:43 GMT -5
But it's hard to calculate marginal rate on property taxes!  |
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cronewitch
Junior Associate
I identify as a post-menopausal childless cat lady and I vote.
Joined: Dec 20, 2010 21:44:20 GMT -5
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Post by cronewitch on Jan 9, 2011 2:08:53 GMT -5
My marginal income tax rate is 15% but my effective federal income tax is about 4-5%. But that is my total federal income tax effective rate including other income and on my gross pay not my taxable pay or non taxed income. I pay almost twice as much in property taxes as income taxes.
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quotequeen
Well-Known Member
Joined: Dec 18, 2010 15:51:15 GMT -5
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Post by quotequeen on Jan 9, 2011 10:09:18 GMT -5
But it's hard to calculate marginal rate on property taxes! The marginal rate is zero unless you are planning to buy a more expensive house because of your raise. |
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TrixAre4Kids
Familiar Member
'Not all those who wander are lost' - J. R. R. Tolkien
Joined: Dec 22, 2010 22:33:15 GMT -5
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Post by TrixAre4Kids on Jan 9, 2011 22:01:17 GMT -5
Crone, do you declare your roommate income? |
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cronewitch
Junior Associate
I identify as a post-menopausal childless cat lady and I vote.
Joined: Dec 20, 2010 21:44:20 GMT -5
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Post by cronewitch on Jan 10, 2011 3:09:49 GMT -5
Crone, do you declare your roommate income?
No I consider it a reduction of expenses. I probably wouldn't have it taxable anyhow since I have a lot of expenses to offset it. The bookkeeping would be a nightmare. He might skip paying for a long them then double pay and it is cash that I don't track. Then I spend money to keep him happy on special foods and clothing and things so figuring out a profit wouldn't be worth the effort. I don't think the IRS would let me take a loss and if I depreciated his parts of the house I would have a loss.
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AgeOfEnlightenmentSCP
Distinguished Associate
Joined: Dec 21, 2010 11:59:07 GMT -5
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Favorite Drink: Sweetwater 420
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Post by AgeOfEnlightenmentSCP on Jan 10, 2011 13:08:25 GMT -5
47% of households have $0 Federal Tax Liability, and 80% of that 47% actually get more than they pay which even offsets the "but they pay the payroll tax (FICA)" arguments. That's unsustainable- especially as long as the non-payers, and takers maintain the right to vote.
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