Comments on: Average Federal Tax Rates, by Income Percentile http://newsburglar.com/2008/10/28/average-federal-tax-rates-by-income-percentile/?utm_source=rss&utm_medium=rss&utm_campaign=average-federal-tax-rates-by-income-percentile Thu, 08 Mar 2012 17:44:11 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Randall http://newsburglar.com/2008/10/28/average-federal-tax-rates-by-income-percentile/comment-page-1/#comment-4578 Randall Fri, 09 Sep 2011 16:07:38 +0000 http://newsburglar.com/?p=644#comment-4578 Here's a link to the Forbes article documenting some of this. http://www.forbes.com/2009/01/29/irs-high-income-personal-finance-taxes_0129_wealthy_americans.html Tax law should result in quasi-equitable outcomes--and perhaps lowering income tax rates while raising capital gains will eliminate this absurdity. Here’s a link to the Forbes article documenting some of this.

http://www.forbes.com/2009/01/29/irs-high-income-personal-finance-taxes_0129_wealthy_americans.html

Tax law should result in quasi-equitable outcomes–and perhaps lowering income tax rates while raising capital gains will eliminate this absurdity.

]]> By: Randall http://newsburglar.com/2008/10/28/average-federal-tax-rates-by-income-percentile/comment-page-1/#comment-4577 Randall Fri, 09 Sep 2011 16:02:17 +0000 http://newsburglar.com/?p=644#comment-4577 You should note how misleading it is to merely include the top 1%. The real question about raising taxes has nothing to do with raising "income taxes", but rather adjusting capital gains. Currently the top .1% (who pay a very large amount of taxes in $$$ pay an average tax rate of right around 15%. They make all of their earnings in stock (no wage) and hence just pay a 15% capital gains tax. That's ridiculous. There's a large fraction of the top 1% that's paying 35% on their income--because they don't earn all of their income through stocks, but rather through wages by working. You should note how misleading it is to merely include the top 1%. The real question about raising taxes has nothing to do with raising “income taxes”, but rather adjusting capital gains. Currently the top .1% (who pay a very large amount of taxes in $$$ pay an average tax rate of right around 15%. They make all of their earnings in stock (no wage) and hence just pay a 15% capital gains tax. That’s ridiculous. There’s a large fraction of the top 1% that’s paying 35% on their income–because they don’t earn all of their income through stocks, but rather through wages by working.

]]> By: Liz, Pennaylvania http://newsburglar.com/2008/10/28/average-federal-tax-rates-by-income-percentile/comment-page-1/#comment-2570 Liz, Pennaylvania Fri, 05 Feb 2010 00:46:10 +0000 http://newsburglar.com/?p=644#comment-2570 Do you know if those tax rate calculations take into account, the ss and medicare tax paid, its not true the the lowest earners pay no federal tax if they are paying employemnt taxes. Those earning higher income only pay that tax on a portion of thier income. What are the % of total fed tax paid to total income? Do you know if those tax rate calculations take into account, the ss and medicare tax paid, its not true the the lowest earners pay no federal tax if they are paying employemnt taxes. Those earning higher income only pay that tax on a portion of thier income. What are the % of total fed tax paid to total income?

]]> By: Brian Karpuk http://newsburglar.com/2008/10/28/average-federal-tax-rates-by-income-percentile/comment-page-1/#comment-1058 Brian Karpuk Tue, 07 Apr 2009 14:05:57 +0000 http://newsburglar.com/?p=644#comment-1058 This link updates the Congressional Budget Office’s (CBO’s) <a href="http://www.cbo.gov/ftpdocs/100xx/doc10068/effective_tax_rates_2006.pdf" rel="nofollow">estimates of historical effective tax rates</a> —that is, households’ tax liability divided by their income—for various income categories. <blockquote>In 2006, the overall effective federal tax rate was 20.7 percent (see Table 1). Individual income taxes, the largest component, were 9.1 percent of household income. Payroll taxes were the next largest source, with an effective tax rate of 7.5 percent. Corporate income taxes and excise taxes were smaller, with effective tax rates of 3.4 percent and 0.7 percent.</blockquote> Also see: <a href="http://www.cbo.gov/publications/collections/taxdistribution.cfm" rel="nofollow">Data on the Distribution of Federal Taxes and Household Income</a> This link updates the Congressional Budget Office’s (CBO’s) estimates of historical effective tax rates —that is, households’ tax liability divided by their income—for various income categories.

In 2006, the overall effective federal tax rate was 20.7 percent (see Table 1). Individual income taxes, the largest component, were 9.1 percent of household income. Payroll taxes were the next largest source, with an effective tax rate of 7.5 percent. Corporate income taxes and excise taxes were smaller, with effective tax rates of 3.4 percent and 0.7 percent.

Also see: Data on the Distribution of Federal Taxes and Household Income

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