[FoRK] choose your tax plan

kelley kelley at inkworkswell.com
Sun Oct 19 20:26:51 PDT 2008


At 11:03 PM 10/19/2008, Owen Byrne wrote:
>I don't think "close to -0- tax" is any way accurate if you actually 
>account for all those deductions that aren't federal tax (FICA, 
>state/local taxes). I ran $40k through some payroll calculators and they 
>show that if you include everything most people earning $40k will lose a 
>third to the government. Which is probably nearly identical to what the 
>people making $60k and $80k lose.


This doesn't include state/local, but it is the _effective_ Fed tax rate, 
which is what actually gets paid, as opposed to the rate on the books 
(income, SS, excise, etc. ) It's done in terms of income quintiles. They do 
that so they can better compare over time, since $40k today isn't what 40k 
was in 1980.

<http://cbo.gov/ftpdocs/88xx/doc8885/Appendix_wtoc.pdf>.

Total Effective Federal Tax Rate
                                  quintile
               ---------------------------------------------
               first    second   third    fourth   fifth
      1979      8.0     14.3     18.6     21.2     27.5
      1980      7.7     14.1     18.7     21.5     27.3
      1981      8.3     14.7     19.2     22.1     26.9
      1982      8.2     13.8     17.9     20.6     24.4
      1983      9.1     13.7     17.5     20.1     23.9
      1984     10.2     14.6     18.0     20.4     24.3
      1985      9.8     14.8     18.1     20.4     24.0
      1986      9.6     14.8     18.0     20.5     23.8
      1987      8.7     14.0     17.6     20.2     25.8
      1988      8.5     14.3     17.9     20.6     25.6
      1989      7.9     13.9     17.9     20.5     25.2
      1990      8.9     14.6     17.9     20.6     25.1
      1991      8.4     14.2     17.6     20.5     25.3
      1992      8.2     13.7     17.4     20.2     25.6
      1993      8.0     13.5     17.3     20.2     26.8
      1994      6.6     13.1     17.3     20.4     27.4
      1995      6.3     13.4     17.3     20.5     27.8
      1996      5.6     13.2     17.3     20.3     28.0
      1997      5.8     13.6     17.4     20.5     28.0
      1998      5.8     13.0     16.8     20.4     27.6
      1999      6.1     13.3     16.9     20.5     28.0
      2000      6.4     13.0     16.6     20.5     28.0
      2001      5.1     11.5     15.3     18.9     26.7
      2002      4.7     10.8     14.8     18.3     26.0
      2003      4.6      9.8     13.8     17.4     25.0
      2004      4.3      9.9     14.1     17.3     25.2
      2005      4.3      9.9     14.2     17.4     25.5

Reagan:
1980-84         2.2      0.3     -0.6     -0.8     -3.2
Clinton:
1992-96        -2.6     -0.5     -0.1      0.1      2.4
Bush:
2000-05        -2.1     -3.1     -2.4     -3.1     -2.5

              top 10%  top 5%   top 1%
      1979     29.6     31.8     37.0
      1980     29.0     30.8     34.6
      1981     28.2     29.4     31.8
      1982     25.3     26.0     27.7
      1983     24.8     25.6     27.7
      1984     25.2     26.1     28.2
      1985     24.7     25.4     27.0
      1986     24.3     24.6     25.5
      1987     27.2     28.5     31.2
      1988     26.7     27.8     29.7
      1989     26.3     27.2     28.9
      1990     26.1     27.0     28.8
      1991     26.6     27.6     29.9
      1992     26.9     28.1     30.6
      1993     28.6     30.5     34.5
      1994     29.4     31.3     35.8
      1995     29.8     31.8     36.1
      1996     30.1     32.0     36.0
      1997     29.9     31.6     34.9
      1998     29.3     30.8     33.4
      1999     29.7     31.2     33.5
      2000     29.6     31.0     33.0
      2001     28.5     30.0     32.8
      2002     27.9     29.5     32.8
      2003     26.8     28.5     31.7
      2004     27.1     28.7     31.4
      2005     27.4     28.9     31.2

Regan:
1980-84        -4.4     -5.7     -8.8
Clinton:
1992-96         3.2      3.9      5.4
Bush:
2000-05        -2.2     -2.1     -1.8





More information about the FoRK mailing list