The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/ltlttr-federal-tax-rate-state-tax-rate-10164233.aspx

Subject:  Re: 401(k) and foolishness revisited Date:  4/26/1998  9:46 AM
Author:  nonqual Number:  3041 of 76082

<<TR = (Federal Tax Rate + State Tax Rate) =(0.28 + 0.09)>>

Assuming one itemizes, don't you have to account for the deductiblity of state income taxes on the federal return:

TR = (Federal Tax Rate + State Tax Rate) =[0.28 + 0.09(1-0.28)]??
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us