My hubby is in the high income bracket and has to pay 40% tax on any amount over the limit. It sucks! What is the point of having a high income when you end up with a pretty regular one after tax? He said in America tax isn't so high for high income workers, is this true?
2007-09-03 17:36:14 · 5 answers · asked by SmEllY! 6 in Business & Finance ➔ Taxes ➔ United States
The highest rate for federal taxes in the US is currently 35%. For someone who is married and filing a joint return, that is on taxable (after deductions) income of $336,550 for the year.
Most states also levy a state income tax. That can range from a couple percent to around 9% depending on the state.
2007-09-03 18:11:19 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
The highest federal income tax bracket is 35%. There is another payroll tax (FICA) of 7.65%. And most states and some localities have their own income taxes. In Washington DC it's 9.3%. Add all of those up, and the wages of a high earner in Washington DC would effectively be in a 51.95% tax bracket.
2007-09-04 05:26:35 · answer #2 · answered by Plea_of_insanity 5 · 0⤊ 0⤋
There is IRA, SSI, (is just another tax) and sometimes state taxes so if you are lucky you might get 50% of your gross income.
2007-09-03 22:17:28 · answer #3 · answered by lonetraveler 5 · 0⤊ 1⤋
Have kids ---Lots and lots of kids.
2007-09-03 18:03:07 · answer #4 · answered by Dionannan 5 · 1⤊ 1⤋
too much
2007-09-03 18:58:52 · answer #5 · answered by chicanaGirl 2 · 0⤊ 1⤋