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

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  •  Thanks, enlightening. Question. (2+ / 0-)
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    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-)
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      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-)
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        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.

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