The Motley Fool Discussion Boards
Retirement Discussions / Retire Early CampFIRE
|Subject: Re: What annoys the Right more?||Date: 10/15/2012 5:29 PM|
|Author: MadCapitalist||Number: 648959 of 847118|
What's worse is that Democrats insist that the middle class pays a higher tax rate than Romney because they are comparing the marginal rate of the middle class with Romney's effective rate.
I was wondering about that as well how liberals make these high tax rate declarations.
Thanks to maxing out 401ks and HSA's and itemizing charitable donations, a small amount of mortgage interest and a healthy chunk of real estate taxes, our effective tax rate is slightly under 10% on a 6 figure income.
When you live on less than 50% of your income, you can do things like max out 401k's. And we also take advantage of the over 50 contributions.
Here are the effective tax rates by income category:
Median household income is slightly below $50,000, but for argument's sake, let's assume that "middle class" is $50,000 to $100,000. They pay only 8%.
|Copyright 1996-2016 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|