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If your marginal tax rate is approximately constant, then it will also approximately equal your overall ratio of tax/income. So even though the article doesn't
by tbrownaw 16y ago
If your marginal tax rate is approximately constant, then it will also approximately equal your overall ratio of tax/income. So even though the article doesn't seem to be particularly careful with the difference, it doesn't really matter in this case.
- _delirium 16y agoThe numbers don't add up to the macro numbers, though--- the governments at all levels added together pull in about 25-30% of U.S. GDP in taxes, not 40%. One thing throwing off his numbers is that he assumes all income to be ordinary income, whereas a large proportion of Americans' income, especially at the high end, get classified as capital gains or qualified dividends, which are taxed at lower rates. I believe Warren Buffett calculated that his real tax rate was 18%, for example.
- camiller 16y agoI make considerably less than Warren, and virtually none is capitol gains. After home mortgage deduction, charitable deductions, etc. My effective federal tax rate was like 7.2% (If I remember what TurboTax told me correctly). The previous year it was 6.9%. My marginal federal bracket rate is 28% ($82,400-171,850). Warren really like to talk that crap up about how he pays less taxes than his secretary. To me his secretary just needs a better tax guy.
- Retric 16y agoAre you forgetting about the 12.4% you pay to SS? How about 2.9% to Medicare? Now let's add in sales and property taxes etc. PS: Relative to his income his sales and property taxes are well under 0.1%.