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The first paragraph of that Wikipedia page: "Personal income is an individual's total earnings from wages, investment interest, and other sources. The Bureau of
by endominus 4y ago
The first paragraph of that Wikipedia page: "Personal income is an individual's total earnings from wages, investment interest, and other sources. The Bureau of Labor Statistics reported a median weekly personal income of $1,037 for full-time workers in Q1 2022. For the year 2020, the U.S. Census Bureau estimates that the median annual earnings for all workers (aged 15 and over) was $41,535; and more specifically estimates that median annual earnings for those who worked full-time, year round, was $56,287."
That graph seems to be just incorrect. All three of the links it's supposedly sourced from don't have it on their pages. There is a remark of "own work," so I think a Wikipedian assembled it themself. Given that it frankly contradicts the article it's in, I would assume that it's in error.
- mort96 4y agoThe graph would be consistent with the part you quoted if the median earners were paying 33.5% tax: 41535 - (41535 * 0.335) is roughly the 27598 figure it shows for 2020. The figure only shows state and federal income tax, which adds up to 13% tax; I don't know enough about the US to now if there are other taxes which would add up to 33.5%.
- endominus 4y agoThe graph includes state, federal, and payroll tax. They're stacked above the income after tax. They do not add up to $41,535.
- mort96 4y agoI ignored the payroll tax, because I assumed that's not counted as part of the employee's gross income? And I agree that neither income tax nor income + payroll tax adds up to the 33.5%. I don't know if there are more taxes which need to be considered. 13% total tax seems low.
- dragonwriter 4y ago> I ignored the payroll tax, because I assumed that's not counted as part of the employee's gross income Employee share of payroll tax is, employer share (which is shown reaching down from the bottom) is not. > 13% total tax seems low. Given what I've actually paid with a far above median income, 13% soubds reasonable. Its low as a nominal rate, but there are lots of credits and deductions available, and the before-tax median personal income is well below the cutoff for EITC, which can be a huge one. Heck, a large minority of the population pays zero or negative net income tax.