Skip to main content

View Diary: Bartlett:  Teabaggers Totally Ignorant About Taxes (276 comments)

Comment Preferences

  •  Thanks, enlightening. Question. (2+ / 0-)
    Recommended by:
    Clytemnestra, bushondrugs

    I'd been thinking the tax rate was much higher.

    I don't understand this part:

    According to calculations  by the Joint Committee on Taxation, a congressional committee, tax filers with adjusted gross incomes between $40,000 and $50,000 have an average federal income tax burden of just 1.7%. Those with adjusted gross incomes between $50,000 and $75,000 have an average burden of 4.2%.

    I calculated the AGI from my tax schedule roughly, and for AGI from $41K to $49K the tax rate is 0.138 or 13.8% (not 1.7% which is obviously a mistake unless I'm misunderstanding something). Similarly from $51K to $74 K the tax rate is 16.4%.

    •  Lots of people in that bracket get tax credits. (1+ / 0-)
      Recommended by:
      annominous

      AGIs between $40,000 and $50,000 include lots of people who are parents who get tax credits for childcare expenses, etc.

      Still, the 1.7% seems low, and I wish I could find the first-hand reference it came from.

      A Wall Street "bonus" should not be more than what my house is currently worth.

      by bushondrugs on Sat Mar 27, 2010 at 07:35:36 AM PDT

      [ Parent ]

      •  This is the document Barlett referred to (0+ / 0-)

        Joint Committee on Taxation

        I think if you go to the very end of it, there are a series of tables that provide some back-up to the assertion.  I didn't do all the math, but there are some significant credits and deductions in the lower income ranges.  I think that is why the question of "what do you mean by income of $50,000?" is legit.  Is that w-2? Is that Gross?  Is that Taxable (i.e., after all deductions addressed and credits taken)

      •  I calculated AGI by (2+ / 0-)
        Recommended by:
        Pinecone, bushondrugs

        Base earned income + $3650 + $5700 (standard deductions) by the tax table rate, but I didn't do any calculations for married filing jointly (if they file jointly they already get a big break, see the tax tables). I calculated only for filing single (lazy Saturday...).

        If it is true that $40K-$50K people get that big of a break with tax credits, then people making $20K-$30K probably qualify for tax breaks too.

        If this is true, the tax structure seem regressive against single people.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site