stealthcattus:capitalism-and-analytics:So at first I was like, that’s not how taxes work like
stealthcattus:capitalism-and-analytics:So at first I was like, that’s not how taxes work like at all……but, when you consider state income taxes, FICA, indirect taxes, health and car insurance (all of which are effectively taxes), the total isn’t far off…. 22% is federal by itself. Those would be on top of it. Ehhh not exactly because if you had $50,000 of taxable income, you’d pay 10% on that first $9,950 and 12% on the chunk of income between $9,951 and $40,525. And then you’d pay 22% on the rest, because some of your $50,000 of taxable income falls into the 22% tax bracket. The total bill would be about $6,800 — about 14% of your taxable income, even though you’re in the 22% bracket. That 14% is called your effective tax rate.That doesn’t even take into account any federal tax deductions or credits either. -- source link