Somebody told me they once were and I didn't think that was possible. If it is, what amount of income would pay that much.
2006-12-09 10:04:15 · 6 answers · asked by luvfurypassionenergybabe 5 in Business & Finance ➔ Taxes ➔ United States
Federal tax rates at high income levels reached 50% and much higher not so many years ago. Now, the maximum rate is 35%.
2006-12-09 16:01:30 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Your marginal rate (the rate you pay on your last dollar of income) can be higher than the top rate charged. In the UK it is possible to pay tax on your last pound of income at a rate of 45.5%, even though the top rate is only 40%. That happens if dividends push you into the 40% bracket.
With state and FICA you could get to 50% as well. Here in NC the top rate is 8.25%. Add that to 35% federal and 7.65 FICA and you get 50.9%. Of course, that is not your effective rate because not all of your income suffers federal or state tax.
2006-12-10 00:48:16 · answer #2 · answered by skip 6 · 0⤊ 0⤋
If you add Federal, State, Local, FICA and sales tax, 50% is achievable. The maximum Federal is 28%, ignoring corporate tax rates. States can get up to 6% or more, FICA is about 6% and sales tax can be up to about 8% (varies widely and only applies to purchases, not income). Property Taxes can be up there as well, but again is hard to estimate due to the high amount of variance from place to place.
2006-12-09 10:17:27 · answer #3 · answered by n0witrytobeamused 6 · 0⤊ 0⤋
Currently 35% is the highest Federal income tax rate in the US. During WWII, the highest rate was 94%.
2006-12-09 10:49:21 · answer #4 · answered by STEVEN F 7 · 1⤊ 0⤋
Not for US Federal Income Tax. In other countries, it happens. It might happen in some states, but I doubt it. The federal estate and gift taxes are high percentages. I'm blanking on the actual numbers right now, but they do approach 50%.
2006-12-09 10:10:30 · answer #5 · answered by st_mel 2 · 0⤊ 1⤋
It depend where your friend was based at that time.Here in UK we have 3 brakets i.e @10%,22% & 40% for income tax.Inhertance tax is @ 40%.Even we don't have a taxation @50% for companies.Your friend might have confused something with that calculations.Check with him or otherwise eloborate on your question, specially where your friend was based at that time & time, as rates varies for different financial years
2006-12-09 10:20:49 · answer #6 · answered by Anonymous · 0⤊ 1⤋