I just read the Grand Rapids press and how we are in debt 1.1 billion dollars.
Well they raised the personal income tax rate from 3.9 to 4.35 percent. I'm only 12, and I'm doing a report on this, so how will this affect us?
2007-10-01 13:19:31 · 4 answers · asked by Kissy 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
It is a state tax rate, and according to the newspaper, it is just for Michigan, so that we can recover from our debt. So can you answer the question?
How will a change in personal tax rate affect us?
2007-10-01 13:36:49 · update #1
As you said, it is an income tax. In the absence of exemptions, it means .45% more taxes assessed on the individuals earning wages in Grand Rapids.
Most employees have state and federal taxes withheld from their paychecks and won't notice a significant impact. For every $100 of pay, the maximum amount of change would be $.45.
However, I'm willing to guess that this is only one of the changes they made to address their 1.1 billion dollar deficit. In order for the increase in personal income taxes to cover the deficit, the total amount of personal earnings would have to be over $244 billion. (If you take $244 times .45%, the increase, you get $1.1 billion.) If you could find out what the total estimated personal income tax wage base is for Grand Rapids and multiply it by .45%, you'll know the true estimated impact toward the deficit (for that year).
Most of this is math. It just depends on how you analyze it. :)Best of luck!!
2007-10-02 06:13:48 · answer #1 · answered by Molly 6 · 1⤊ 0⤋
Well , I never had a 3.9 rate before , is that a state tax ?
My federal tax runs in the 20% range for most categories plus about 6% for the state .
Is the 3.9 to 4.35 for just Michigan ?
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2007-10-01 13:35:14 · answer #2 · answered by kate 7 · 0⤊ 0⤋
it would would desire to be a plateau tax fee to exclude a team. To pay for what we spend each and every 3 hundred and sixty 5 days...40% or extra thinking the diminishing returns of elevating taxes as against entire funds gained via the government. in case you opt for to save the undesirable of this united states of america taxes you may do away with the corporate tax and the earnings tax via repeal of the 16fh substitute and then upload a revenues tax of 15 to 20% on all universal marketplace purchases.
2016-12-28 10:15:43 · answer #3 · answered by ? 3 · 0⤊ 0⤋
It will leave you with less $$$ in your pocket. Duh!
2007-10-02 01:48:02 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋