Tax Experts

Discussion in 'Current Events' started by WillowTree, Jun 14, 2010.

  1. WillowTree
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    WillowTree Diamond Member

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    What is the highest tax rate if not 39.4%?
     
  2. Madeline
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    Madeline BANNED

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    The income tax rate in the US is progressive. The highest marginal rate is applied only to income at or above a certain level (around $200,000). The lowest rate is applied to some income, the middle rate to some, some is excluded, etc.

    To ascertain anyone's actual (effective) rate of tax, divide their adjusted gross income by their tax bill; the result is their rate.

    Some income is taxed again as a deterrent to construct considered to be undesirable, e.g., withdrawing funds from a 401(k) plan too soon. Again, to find that taxpayer's effective rate, locate their adjusted gross income and actual tax liability and divide.
     
  3. WillowTree
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    WillowTree Diamond Member

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    Thanks for your effort. But C are for an d Ravi have both stated unequivocablly that no one pays a rate of 39.4% so I wish to know what is the highest rate paid.
     
  4. Care4all
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    Care4all Warrior Princess Supporting Member

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  5. WillowTree
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    WillowTree Diamond Member

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    so no one in the USA pays more than 35% of every dollar they make in taxes? Is this correct? Does this include all taxes? or just Federal Income taxes??
     
  6. Care4all
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    federal income taxes is what we were discussing...

    no one in this country pays 35% income taxes on ALL that they make...they only pay 35% tax rate on the taxable money they make OVER 363,000....if the tax cuts expire then the rate will revert back to the 39% rate for ONLY the money earned OVER the $363000
     
  7. WillowTree
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    WillowTree Diamond Member

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    so come Jan. 2011 no one who makes less than 363 thousand dollars will see a dime to tax increase,, is this correct?
     
  8. Care4all
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    no. they have not done their ''thing'' yet....i believe, or rather they say, the bottom 3 tax brackets, they will not let expire but the top 2 they will....don't know if this will happen in 2011 or if they will put off even the top 2 brackets till we come out of the recession or jobs improve.
     
  9. xsited1
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    xsited1 Agent P

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    35%. When Obama lets the Bush tax cuts expire, it'll go to 39.6%. Unless government spending is cut and we have another dot com-type explosion, 2011 is going to be a very bad year economically.
     
  10. WillowTree
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    WillowTree Diamond Member

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    they are set to expire at the end of this year. you say the democrats will vote to extend them??
     

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