Tax Rates Reflect Well Being: Difference between revisions
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Revision as of 03:21, 21 September 2024
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I hardly have to tell you that states along with the federal government are having budget worries. I am not advocating a political view of your left insects right. The specifics are there for everyone to see. The Great Recession has spurred federal government to spend to make an attempt to get away from it rightly or unnecessarily. The annual deficit for 2009 was 1.5 trillion dollars along with the national debt is now only about $13 mil. With 60 trillion dollars in unfunded liabilities coming due associated with next thirty years, federal government needs profits. If anything, the states are in worse outline. It is not very picture.
That makes his final adjusted gross income $57,058 ($39,000 plus $18,058). After he takes his 2006 standard deduction of $6,400 ($5,150 $1,250 for age 65 or over) and a personal exemption of $3,300, his taxable income is $47,358. That puts him involving 25% marginal tax class. If Hank's income rises by $10 of taxable income he pays off $2.50 in taxes on that $10 plus $2.13 in tax on the additional $8.50 of Social Security benefits that will become taxed. Combine $2.50 and $2.13 and you $4.63 or a 46.5% tax on a $10 swing in taxable income. Bingo.a fouthy-six.3% marginal bracket.