[ale] Defeated by the offshoring of America....

[Joe]

Chuck Huber <chuck at cehuber.org> writes:

> On Tue, 15 Apr 2003 at 05:18:17 -0600, Joe wrote:
> > Calvin Harrigan <charrig at earthlink.net> writes:
> ...
> > > >I am *READING THESE NUMBERS OFF OF MY 2002 1040 FORM*. Please don't
> > > >tell me I don't know what I'm talking about. My total net income in
> > > >2002 was $54K, gross was $63K. That is a tax burden of 14.3%,
> > > >neglecting sales taxes (which I admit are a significant consideration,
> > > >but not *that* significant).
> > > >
> > > >Obviously, a 66% *marginal* tax rate does not mean you pay 66% on your
> > > >entire income. The claim made by others (not you) was that a person
> > > >making aroud $60K would only see 33% of their income in their
> > > >paycheck. That is demonstrably false.
> 
> If all you're looking at is Form 1040, you're missing alot.  Form 1040
> only addresses the Federal Income Tax.  It does not address payroll
> taxes such as medicare and social security.  Social Insecurity alone
> accounts for 7.5% on a paycheck.  So now your 14.3% is up to 21.8%.
> By the time you add in the other payroll taxes, and state income taxes,
> you're probably sitting in the neighborhood of the high 30%'s - maybe
> somewhere around 38%.

Sorry, not 1040, I was looking at the W2. The 14% number came from
the ratio between gross income and total taxes appearing on the W2.
There's no state income tax in Texas, so that's pretty much the
whole ball of wax. I get the same number, incidentally, if I
compare gross income to the net that appeared on my pay stubs.

Cheers,

-- Joe Knapka
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