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Old 03-25-2010, 03:03 PM
sroyc sroyc is offline
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Your calculations are probably based on your tax bracket but your effective tax rate likely to be much lower because of the progressive tax system. Regardless of what your tax contribution may be, the average person in the US pays much lower taxes than those in other developed countries. In fact, the very rich in the US are subjected to lower tax rates than the middle class because most of their income is from capital gains.

Quote:
Originally Posted by jetflyer View Post
Some people say US has lower taxes compared to other countries, thats because they do not count SS + Medicare as part ot Tax, which in my opinion should be included as tax/liability.
If so, we pay (per say) 25% tax, it is actually 25+7.65+7.65 = 40.3% tax. On top, add your state tax, which in my case is 5.75%, so all together 46.05% is my tax.

It is like you order pizza and you pay separate for crust + sauce + cheese + toppings.
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