By my estimation and IRS calculator, his tax liability is probably under 20%. Probably. This assumes about 15% is being taken out for healthcare and retirement however, so yeah, the net paycheck will be approximately 30-40% lower than gross.
I’d estimate OP has $440 a month left over after all the list expenses.
No one is paying 40% total tax rate unless they are single, make $350,000+, and live in a high tax area (NYC, San Francisco). If you are married, you have to make at least $800,000 to pay 40% overall.
That’s what I used. Still some question about how much nontaxable retirement/Healthcare as well as what the state taxes would be. I estimated $5,700 in federal and $1000 in state. Based on 10% to retirement and $2400 a year for insurance, right off the top, and a 3% state tax.
Look through the thread and you will see people showing their work and coming up with similar numbers. 40% was a rough estimate off the top of my head. Figures from a recent paystub of mine: gross income of $2700.80, net income of $1774.41. My deductions are more than just taxes, but regardless that is an effective reduction in pay of %35.31. This is a real life figure that the others may be similarly subjected to, as opposed to the numbers you get out of a calculator.
But it is closer to 4%, while they could easily pay 95%.
Taxes are not the problem. They are necessary for a functioning society. And if other people avoid paying taxes, that means YOU will have to pay more. Because the money will have to come from somewhere.
I’d gladly pay 90% taxes if it meant the rest of my expenses were provided by the government.
In the UK if you earn over £100k you effectively get taxed 60% (using PAYE)
I’d happily pay 75% if it meant public services were actually effective, but we have the double whammy of high taxation and crumbling services - that’s what over a decade of conservative rule does… Here’s to the next 4 years!
Look through the thread and you will see people showing their work and coming up with similar numbers.
I’ve not seen anyone so far in this thread quoting 40% taxes. Looking at
I just pulled my paystub (single income household) and I’m at 37% of income going to taxes and full benefits (including 7% to my 401k) covering my whole family while not making much more than the OP
100 hours of work if the money is tax free (it’s not). Taxes take about 40% of your gross income so on $23/hr hr can’t afford the listed bills.
By my estimation and IRS calculator, his tax liability is probably under 20%. Probably. This assumes about 15% is being taken out for healthcare and retirement however, so yeah, the net paycheck will be approximately 30-40% lower than gross.
I’d estimate OP has $440 a month left over after all the list expenses.
$440 per month to pay for gas, utilities, phone bill, insurance, incidentals, etc. You can forget about savings completely.
I don’t think OP is too far off the mark.
Use this tax calculator; it includes FICA, state taxes, and local taxes:
https://smartasset.com/taxes/income-taxes
No one is paying 40% total tax rate unless they are single, make $350,000+, and live in a high tax area (NYC, San Francisco). If you are married, you have to make at least $800,000 to pay 40% overall.
That’s what I used. Still some question about how much nontaxable retirement/Healthcare as well as what the state taxes would be. I estimated $5,700 in federal and $1000 in state. Based on 10% to retirement and $2400 a year for insurance, right off the top, and a 3% state tax.
Nowhere in the USA will you be taxed 40% of your income, I’m amazed such a blatantly obvious statement is being so heavily upvoted
Look through the thread and you will see people showing their work and coming up with similar numbers. 40% was a rough estimate off the top of my head. Figures from a recent paystub of mine: gross income of $2700.80, net income of $1774.41. My deductions are more than just taxes, but regardless that is an effective reduction in pay of %35.31. This is a real life figure that the others may be similarly subjected to, as opposed to the numbers you get out of a calculator.
I’d be glad if rich people paid 40% tax.
But it is closer to 4%, while they could easily pay 95%.
Taxes are not the problem. They are necessary for a functioning society. And if other people avoid paying taxes, that means YOU will have to pay more. Because the money will have to come from somewhere.
I’d gladly pay 90% taxes if it meant the rest of my expenses were provided by the government.
In the UK if you earn over £100k you effectively get taxed 60% (using PAYE)
I’d happily pay 75% if it meant public services were actually effective, but we have the double whammy of high taxation and crumbling services - that’s what over a decade of conservative rule does… Here’s to the next 4 years!
I’ve not seen anyone so far in this thread quoting 40% taxes. Looking at
I just pulled my paystub (single income household) and I’m at 37% of income going to taxes and full benefits (including 7% to my 401k) covering my whole family while not making much more than the OP