4 ms·

are you including sales tax, city, state, federal, etc. ?

• loeg 3y ago
  Yes. Median US household income is ~$75k. For married households with that income and a ~$30k standard deduction, they will pay an overall federal tax rate of around 7%. For single households with that income and a standard deduction of ~$15k, they'll pay federal tax of around 12%. 10-12% is a high state tax rate, so add that on. (Most high tax states graduate tax by income and wouldn't apply these top rates to $75k income households, but nevermind that.) 1% is a high city tax rate. 10% sales tax isn't unheard of, but sales tax also does not apply to all income -- only spending, and only non-exempt spending. (And usually you also don't see 10% sales tax rates in high income tax states; it's one or the other.) The end result is south of 30% for the median household, even in high tax states. Nowhere near 50%.