What was your effective tax rate???
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Anonymous
How the f*** do you think I can afford to save a down payment for a house making $35k a year? I'm stuck throwing away rent every month because I don't have any extra $ each month after my 20% TAX RATE. Seriously this is ridiculous and what is really f***ed up with America. Also to the PP who suggested I make charitable contributions: I take home $26k a year after taxes and you think I'm about to contribute more than $6,500 (or whatever the standard deduction is, can't remember exactly) in order to itemize and pay less taxes? I want some of what you're smoking. |
Anonymous
Seriously. It'd be nice if those with higher HHIs would think before they type. |
Anonymous
They were being candid. It wxplained why they have low ETRs. Angry poster should quit McDonalds and get a real job. |
Anonymous
How are you paying 22%? Is that all taxes including state, payroll, etc? The others are probably quoting federal income tax effective rate only, and with 35k income and only standard deduction, your rate should be about 10% as well. |
Anonymous
No way a full-time worker at McDonald's is making $35k a year. At (generously) $9 an hour, they'd be making $18.7k a year BEFORE taxes if they work 40 hour workweeks and don't take ANY vacation time. |
Anonymous
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Does $35K poster have children? If so, s/he may also be receiving the Earned Income Credit on his/her taxes, which is essentially free money.
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Anonymous
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To the 35K poster,
I was there too. A lot of us were. I lived very FRUGALLY and saved and paid debt. And it SUCKED. I still thrift store shop, etc. Now I have a place that I got with very little money down. Basically converting my rent into a mortgage. It can be done. Good luck. |
Anonymous
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AGI: $420k
ETR: 23.8% |
Anonymous
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AGI - 73k
ETR - 7.86% |
Anonymous
HOW |
Anonymous
| 340k 32%, I don't understand how people can get lower than 30% at that income or higher. |
Anonymous
A couple of things here. 1) You're right. The mortgage interest deduction disproportionately benefits people with incomes in higher ranges (but not the ultra millionaires, who generally don't have mortgages). Policymakers know this, which is why there's a serious effort to curtail the mortgage interest deduction. This is led by congressional Republicans mostly, and is likely to be fought hardest by Democrats (who generally represent urban areas, where housing is more expensive). W&M Chair Dave Camp just proposed capping the deduction at interest on a $500,000 mortgage (the current level is $1.1 million, including home equity). Most people know that deducting a dollar of interest is worth a lot more to those in the top income brackets than those in the lower (40 cents on the dollar vs. 10 cents on the dollar). So, I would fully expect the mortgage interest deduction to be rolled back in the next five years or so. The deduction for second mortgages (second properties) is almost certainly going to go away. 2) I'm guessing you are young, correct? I made $35,000 in my early 20, too. I didn't buy a house until I was 31. Something to think about. |
Anonymous
Not PP, but here's my guess: They live off investments. That's the tax rate for long-term capital gains at that income level. |
Anonymous
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AGI $140
13% - federal 3.5% - state (estimated) |
Anonymous
Doing away with the mortgage interest deduction helps the rich and kills the middle class. Can't believe you would think it would be a good idea. |