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> After the recent few years of inflation middle class is now subject to higher tax brackets than ever, and poverty class is being taxed at almost 30% if you in
by BHSPitMonkey 3y ago
> After the recent few years of inflation middle class is now subject to higher tax brackets than ever, and poverty class is being taxed at almost 30% if you include some states' state tax.
Under the 2023 tax codes, a single filer in California would have to have an household income of $118,250 in order to see a 30% effective tax rate across federal and state taxes combined. I understand $118k might not go as far as it used to (depending on the specific location), but that's hardly the "poverty class". Under the same conditions, a $50,000 income would see an 18.84% effective rate.
Both calculations assume the standard deduction is used; common tax credits and deductions would bring the effective rate lower. These were calculated using: https://smartasset.com/taxes/california-tax-calculator https://smartasset.com/taxes/california-tax-calculator
I don't disagree with the premise that taxes, both federally and at state levels, could be more progressive than they already are, ceteris paribus. Property and sales taxes are broken in this regard, and the obscenely wealthy have too many pathways to avoid contributing meaningfully to the nation's collective tax burden.
- twoodfin 3y agoDon’t forget Californians pay at least a 7.25% sales tax. And counting only individual FICA taxes is really just an accounting trick. Merely accounting for employer FICA “contributions”, and $70K in California gets you to a 30% marginal rate.
- dheera 3y ago$118k is close to poverty class in the bay area if you have a family. For someone fresh out of college who can live in half a bedroom in a moldy group house, bike everywhere, and never see a doctor even in emergency, it's barely okay, but that income isn't sustainable. Median income is $175k in SF and $181k in SJ, by the way.