The IRS has begun releasing financial info projections on 2003 (post Bush tax cut) income tax payments. Some of these facts knocked my socks off ...
44% of Americans pay no income taxes whatsoever. This means that they either :
#1 don't work/collect welfare or other gov't benefits,
#2 earn so little that they don't have to file a return, or #3 earn little enough that even though income taxes are withheld from their paychecks during the year that between exemptions, deductions and tax credits, that they get back every single dollar that was withheld.
The lower earning 50% of Americans, with incomes up to about $64,000, pay less than 4% of total income tax money collected.
The next 40% of Americans, with incomes between about $65,000 and $100,000, pay less than 30% of total income tax money collected.
The top earning 10% of Americans, with incomes above about $100,000, pay over 65% of the total amount of income tax money collected.
This seems pretty good for somebody who lives in a state where housing and living costs are low, and where there is no state or local income tax. They can live well on a $65,000 annual gross income and can keep about $60,000 of it !
This sucks for somebody like me that lives in an expensive state with high living costs and high state and local tax rates. In that case it takes over $100,000 to be able to keep the same $60,000 after tax income as above, because the federal, state and local governments confiscate 40% of your money in income taxes.
And on top of that the cost of living is ridiculous. For example, an average Manhattan condo's price just cracked $1,000,000 (yes a million dollars for an "apartment"), with a $3,000 per month condo mortgage payment for 30 years.
Maybe it's time to start thinking about moving to Nevada !



Reply With Quote


Bookmarks