{"id":178,"date":"2012-10-20T11:08:00","date_gmt":"2012-10-20T15:08:00","guid":{"rendered":"http:\/\/blog.cmhughesmd.com\/?p=178"},"modified":"2012-10-20T11:08:00","modified_gmt":"2012-10-20T15:08:00","slug":"how-much-do-people-pay-in-taxes","status":"publish","type":"post","link":"http:\/\/blog.cmhughesmd.com\/?p=178","title":{"rendered":"How Much Do People Pay in Taxes?"},"content":{"rendered":"

How Much Do People Pay in Federal Taxes? | pgpf.org<\/a><\/p>\n

These top two  graphics do NOT include state and local sales tax, nor property taxes, both of which tend to be very regressive, stacking onto the left sides of these graphs very significantly. Scroll down for TOTAL tax burden.<\/i> <\/p>\n

Effective tax rates: individual income and payroll taxes combined<\/b>
Percent of cash income<\/i><\/span><\/div>\n

<\/a><\/p>\n

SOURCE: TPC, Table T12\u20100018 Effective Federal Tax Rates by Cash Income Percentile<\/i>; 2011, February 2012. Compiled by PGPF.
NOTE: *Individual income tax rates for the lowest and second lowest quintiles are negative and are netted against the payroll tax rate. A quintile is one fifth of the population. Calculations assume that employees also pay the employer portion of payroll taxes in the form ofreduced wages. The breaks are (in 2011 dollars): 20% $16,812; 40% $33,542; 60% $59,486; 80% $103,465; 90% $163,173; 95%$210,998; 99% $532,613; 99.9% $2,178,886.<\/div>\n
Effective tax rates: income, payroll, corporate and estate taxes combined<\/b>
Percent of cash income<\/i><\/span><\/div>\n

<\/a><\/p>\n

SOURCE: TPC, Table T12\u20100018 Effective Federal Tax Rates by Cash Income Percentile<\/i>; 2011, February 2012. Compiled by PGPF.
NOTE: *Individual income tax rates for the lowest and second lowest quintiles are negative and are netted against the payroll tax rate. A quintile is one fifth of the population. Calculations assume that employees also pay the employer portion of payroll taxes in the form ofreduced wages. The breaks are (in 2011 dollars): 20% $16,812; 40% $33,542; 60% $59,486; 80% $103,465; 90% $163,173; 95% $210,998; 99% $532,613; 99.9% $2,178,886.<\/p>\n

Total tax burden, from the Center for Tax Justice, via the NY Times Economix Blog<\/a>:<\/i><\/span><\/p>\n

\"INSERT <\/div>\n

Federal individual income tax rates for married couples, filing jointly, 2012<\/b><\/div>\n\n\n\n\n\n\n\n\n\n\n
Taxable Income<\/th>\nMarginal Tax Rate<\/th>\nIncome Tax Owed<\/th>\n<\/tr>\n
Over<\/th>\nBut not over<\/th>\n<\/tr>\n
$0<\/td>\n$17,400<\/td>\n10%<\/td>\n10% of taxable income<\/td>\n<\/tr>\n
$17,400<\/td>\n$70,700<\/td>\n15%<\/td>\n10% x $17,400 = $1,740 plus
15% x income over $17,400<\/td>\n<\/tr>\n
$70,700<\/td>\n$142,700<\/td>\n25%<\/td>\n$1,740 + 15% x (70,700 \u201017,400) = $9,735 plus
25% x income over $70,700<\/td>\n<\/tr>\n
$142,700<\/td>\n$217,450<\/td>\n28%<\/td>\n$9,735 + 25% x (142,700 \u2010 70,700) = $27,735 plus
28% x income over $142,217<\/td>\n<\/tr>\n
$217,450<\/td>\n$388,350<\/td>\n33%<\/td>\n$ 27,735 + 28% x ( 217,450 \u2010 142,700) = $ 48,665 plus
33% x income over $217,450<\/td>\n<\/tr>\n
$388,350<\/td>\n<\/td>\n35%<\/td>\n$48,665 + (388,350 \u2013 217,450) = $105,062 plus
35% x income above $388,350<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
SOURCE: Joint Committee on Taxation, Overview Of The Federal Tax System As In Effect For 2012<\/i> (JCX 18\u201012), February 24, 2012.<\/p>\n

But note that these tax rates, particularly the top marginal rate are incredibly low in historical context, as are the tax burden on the wealthiest:<\/a><\/i><\/h4>\n

 \"3.jpg\"<\/div>\n

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