Archive for February 25th, 2007
Sunday, February 25th, 2007
I’ve done some ‘back of a napkin’ calculations in the past trying to figure out what the effective tax rate is for United States citizens once you include all the various taxes you pay, including federal, states, sales, corporate, and future taxes on investment and savings. My numbers came out to be around 50%. Steve pointed me to a study this morning which states the rate is more around 40% +/- 5% regardless of your income. I found the table the article shows interesting, it shows the ‘sweet spot’ for the lowest tax burden to be around $50,000.00 in income. The worst income area to be in is around 150K, which coincides with a 3% tax bracket increase for single filers.