15 ms·

Yes it does. `Income before taxes: $63,091', `AVERAGE ANNUAL EXPENDITURES: $49,638'. Computes to $13.453 paid in taxes. That's about 21% of gross income, and c

by dexen 17y ago

Yes it does. `Income before taxes: $63,091', `AVERAGE ANNUAL EXPENDITURES: $49,638'. Computes to $13.453 paid in taxes. That's about 21% of gross income, and compares to expenditures as about 27%. It is my understanding taxes aren't considered expenditures or `costs' anyway. The ring breaks down the expenditures, not the gross income. Whether this is fair or not is up to a democratic debate ;)

nopassrecover 17y ago
Wow US tax rates are low (compared to Australia at least).
- DanielBMarkham 17y ago
  This varies heavily by location. Several percentage points or more. It would be a lot more in, say, New York or San Francisco, whereas it'd be a lot less in, say Tampa or Austin.
  - nopassrecover 17y ago
    Okay cool. Australia doesn't have state taxes on income (see: http://en.wikipedia.org/wiki/South_Australia_v_Commonwealth http://en.wikipedia.org/wiki/South_Australia_v_Commonwealth). Instead states taxes tend to be particular levies for works or "stamp duty" on purchases (e.g. cars/houses). However, when I put the figures through using current exchange rates, AU income tax would be $14,352 US on that amount (around 29% compared to the original 21%) and our tax rates and thresholds have dropped quite significantly recently.
    - whatusername 17y ago
      Don't forget the 10% GST/VAT on almost all purchases.
- johngunderman 17y ago
  We have a heavily graduated tax system though, so looking at the taxes for only one income isn't very telling.
ojbyrne 17y ago
There doesn't seem to be any savings indicated, so I would think that the difference between income and expenditures would also include that.
myoung8 17y ago
Unless, of course, people spend more than they earn net of taxes. But who would do that?
edw519 17y ago
"Yes it does." No, it doesn't. You proved it yourself. You had to do some math to figure it out. The reason taxes don't appear on this U.S. government publication is the same reason that they take withholding out of your check. If you actually saw what it cost you each year, it would piss you off so much you might actually get off your butt and do something about it.
- Xichekolas 17y ago
  The less cynical explanation is that people are generally horrible at saving money, so withholding is the only way the taxes would get paid by most people. It reduces risk to the government that people won't have the cash on hand at the end of the year and just declare bankruptcy or otherwise claim they can't pay. Businesses don't have withholding, but they have quarterly tax payments for the same reason I'd bet. This is the reason that withholding is used by individuals to fund their retirement plans and other rainy day savings accounts. It's too easy to fritter the money away if you actually get your hands on it. I would agree with you that it'd be helpful to see taxes as a section of the pie chart here, but presumably the focus here is what people choose to spend their money on, and taxes aren't much of a choice.
  - bokonist 17y ago
    but presumably the focus here is what people choose to spend their money on, and taxes aren't much of a choice. Taxes are the rent you pay for choosing to live in the USA.
    - TheAmazingIdiot 17y ago
      I didn't "choose" to live in this country. I was born here. And without open borders to make residence in multiple countries, we are not "free" either.
      - bokonist 17y ago
        You choose to stay. A person may be born in an apartment, but that doesn't mean they can live there rent free for the rest of their life. And yes, you are not just free to walk into some other country and live there. But nor are you are allowed to walk onto someone else's property and live on it.
lutorm 17y ago
It's not clear that taxes has to make the balance. There is no entry for savings, for example, nor for debt service. I guess they classified "expenditures" as not including savings, as that's not really expending anything.
anamax 17y ago
> Income before taxes: $63,091' Some taxes are paid on income, other taxes (such as sales) are paid on expenditure. Other taxes (such as property, including cars) are billed directly or lumped into something else (rent).

by dexen 17y ago

nopassrecover 17y ago

Wow US tax rates are low (compared to Australia at least).

DanielBMarkham 17y ago
This varies heavily by location. Several percentage points or more. It would be a lot more in, say, New York or San Francisco, whereas it'd be a lot less in, say Tampa or Austin.
- nopassrecover 17y ago
  Okay cool. Australia doesn't have state taxes on income (see: http://en.wikipedia.org/wiki/South_Australia_v_Commonwealth http://en.wikipedia.org/wiki/South_Australia_v_Commonwealth). Instead states taxes tend to be particular levies for works or "stamp duty" on purchases (e.g. cars/houses). However, when I put the figures through using current exchange rates, AU income tax would be $14,352 US on that amount (around 29% compared to the original 21%) and our tax rates and thresholds have dropped quite significantly recently.
  - whatusername 17y ago
    Don't forget the 10% GST/VAT on almost all purchases.
johngunderman 17y ago
We have a heavily graduated tax system though, so looking at the taxes for only one income isn't very telling.

ojbyrne 17y ago

There doesn't seem to be any savings indicated, so I would think that the difference between income and expenditures would also include that.

myoung8 17y ago

Unless, of course, people spend more than they earn net of taxes. But who would do that?

edw519 17y ago

"Yes it does." No, it doesn't. You proved it yourself. You had to do some math to figure it out. The reason taxes don't appear on this U.S. government publication is the same reason that they take withholding out of your check. If you actually saw what it cost you each year, it would piss you off so much you might actually get off your butt and do something about it.

Xichekolas 17y ago
The less cynical explanation is that people are generally horrible at saving money, so withholding is the only way the taxes would get paid by most people. It reduces risk to the government that people won't have the cash on hand at the end of the year and just declare bankruptcy or otherwise claim they can't pay. Businesses don't have withholding, but they have quarterly tax payments for the same reason I'd bet. This is the reason that withholding is used by individuals to fund their retirement plans and other rainy day savings accounts. It's too easy to fritter the money away if you actually get your hands on it. I would agree with you that it'd be helpful to see taxes as a section of the pie chart here, but presumably the focus here is what people choose to spend their money on, and taxes aren't much of a choice.
- bokonist 17y ago
  but presumably the focus here is what people choose to spend their money on, and taxes aren't much of a choice. Taxes are the rent you pay for choosing to live in the USA.
  - TheAmazingIdiot 17y ago
    I didn't "choose" to live in this country. I was born here. And without open borders to make residence in multiple countries, we are not "free" either.
    - bokonist 17y ago
      You choose to stay. A person may be born in an apartment, but that doesn't mean they can live there rent free for the rest of their life. And yes, you are not just free to walk into some other country and live there. But nor are you are allowed to walk onto someone else's property and live on it.

lutorm 17y ago

It's not clear that taxes has to make the balance. There is no entry for savings, for example, nor for debt service. I guess they classified "expenditures" as not including savings, as that's not really expending anything.

anamax 17y ago

> Income before taxes: $63,091' Some taxes are paid on income, other taxes (such as sales) are paid on expenditure. Other taxes (such as property, including cars) are billed directly or lumped into something else (rent).