Ryan's Tax Rate

[Anonymous]

http://firstread.nbcnews.com/_news/2012/08/17/13340853-paul-ryan-releases-2-years-of-tax-returns?lite

So it says that Ryan's two tax returns show he paid 16% of income in taxes in one year, and 20% in another. I'm not here to argue about Ryan. What I want to know is, who are you idiots who keep saying half of your income goes to taxes??? It clearly doesn't, and Ryan's very ordinary tax returns are a great example of how low our real taxation is.

[Anonymous]

Yikes. You think the only taxes you pay are federal taxes?

Tis but one bite of the apple my dear.

[Anonymous]

Anonymous wrote:Yikes. You think the only taxes you pay are federal taxes?

Tis but one bite of the apple my dear.

OK sweetie, then tell me how you get from 20% to 50%. Please do the math, I'd love to see it.

[Anonymous]

self-employment tax

[Anonymous]

Anonymous wrote:self-employment tax

Bzzzz..

Try again.

[Anonymous]

Um....did Ryan say he paid 50% of his income to taxes? I don't know what your point is. Do you think that Obama's 25% tax rate is all he paid in taxes?

Your federal tax isn't your sole tax. Not that hard to comprehend. Depending on where you live you have state income tax, property tax, etc. If you commute you may have a really high gas tax and even a car tax. Groceries? Food tax. Cell phone? Taxes. Looking at someone's federal tax rate tells you zero about how much they pay in taxes.

[Anonymous]

They are talking about effective tax rates. Look it up.

[Anonymous]

Anonymous wrote:Um....did Ryan say he paid 50% of his income to taxes? I don't know what your point is. Do you think that Obama's 25% tax rate is all he paid in taxes?

Your federal tax isn't your sole tax. Not that hard to comprehend. Depending on where you live you have state income tax, property tax, etc. If you commute you may have a really high gas tax and even a car tax. Groceries? Food tax. Cell phone? Taxes. Looking at someone's federal tax rate tells you zero about how much they pay in taxes.

Stop it. Just stop it. I'm not a fool, I know that I pay state taxes, I know that I pay property taxes, I realize I pay sales taxes, fees for my car, and even parking tickets that I consider to be unfair and therefore a tax.

I am saying that when you add it all up, half your money does not go to the government. And in any case, certainly 16-20% going to the Federal Government is not a lot.

Here are real numbers from me: http://www.ctj.org/pdf/taxday2012.pdf

Now if you think your tax burden REALLY gets close to 50%, show the numbers. And maybe we can explain what you did wrong on your returns.

[Anonymous]

The Social Security tax rate for self-employed is 10.4 percent through the end of the year. The Medicare tax rate is 2.9 percent for self-employed.
Income 35 ss 10.4 med 2.9 Md tax 5 ..53.3%

[jsteele]

Anonymous wrote:The Social Security tax rate for self-employed is 10.4 percent through the end of the year. The Medicare tax rate is 2.9 percent for self-employed.
Income 35 ss 10.4 med 2.9 Md tax 5 ..53.3%

The 35% rate is marginal and only applies to income over $388,351. Everything below that is taxed at a lower rate.

What the OP is trying to point out is that anybody whose effective income tax rate is 35% needs a better accountant. Using Ryan as an example, in 2011 he and his wife had an adjusted gross income of $323,416. That should have put them in the 33% bracket which is the second highest bracket and only 2% lower than the highest. But, their effective rate was 20%.

[Anonymous]

jsteele wrote:

Anonymous wrote:The Social Security tax rate for self-employed is 10.4 percent through the end of the year. The Medicare tax rate is 2.9 percent for self-employed.
Income 35 ss 10.4 med 2.9 Md tax 5 ..53.3%

The 35% rate is marginal and only applies to income over $388,351. Everything below that is taxed at a lower rate.

What the OP is trying to point out is that anybody whose effective income tax rate is 35% needs a better accountant. Using Ryan as an example, in 2011 he and his wife had an adjusted gross income of $323,416. That should have put them in the 33% bracket which is the second highest bracket and only 2% lower than the highest. But, their effective rate was 20%.

Only applies to taxable income over $388,351. So, you could earn $450,000 and have $75,000 worth of deductions (not outside the realm of possibility) and not be in the top bracket.

[Anonymous]

Ryan paid nearly $12,000 in Alternative Minimum Tax.

[Anonymous]

I don't think most people care about the tax rate Ryan or Romney pay, even if it is low. The average person in America doesn't even know their own tax rate. I think what people find distasteful is Romney's Swiss bank account, tax shelter in the Cayman's and who knows what else. That stuff resonates with the average middle class person as unfair and elitist. His campaign understands this and that is why they will never release any more returns. They have calculated that it will look worse to show what is in those returns than it is to continue to keep them secret.

[Anonymous]

Anonymous wrote:I don't think most people care about the tax rate Ryan or Romney pay, even if it is low. The average person in America doesn't even know their own tax rate. I think what people find distasteful is Romney's Swiss bank account, tax shelter in the Cayman's and who knows what else. That stuff resonates with the average middle class person as unfair and elitist. His campaign understands this and that is why they will never release any more returns. They have calculated that it will look worse to show what is in those returns than it is to continue to keep them secret.

On the contrary, I think they care very much. I also think Romney used hocus pocus to avoid transfer taxes on his wealth.

[Anonymous]

Anonymous wrote:The Social Security tax rate for self-employed is 10.4 percent through the end of the year. The Medicare tax rate is 2.9 percent for self-employed.
Income 35 ss 10.4 med 2.9 Md tax 5 ..53.3%

Of course its higher, but because you pay the employer and employee portions. On the other hand your employer would not pay the salary you earn because he would be deducting these before your gross.