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That 40% includes federal, state, social security and other taxes taken out.
by paul7986 9y ago
That 40% includes federal, state, social security and other taxes taken out.
- mercutio2 9y agoYou seem to be confusing marginal tax rate with effective tax rate. People making 300k in California will pay between 33% and 39% effective tax rate (depending on marital status), including State, Federal, and FICA. And that’s without simple tax sheltering techniques like pre-tax deduction for health care, contributing to a 401k, and deducting mortgage interest. https://smartasset.com/taxes/california-tax-calculator https://smartasset.com/taxes/california-tax-calculator
- mercutio2 9y agoActually, that’s a terrible link. Before Trump’s tax increase targeting CA/NY, the SALT itemized deduction lowers the effective tax rate by a further 3% or so, and that calculator fails to include it.