IRS Releases NEW Inflation Tax Brackets...What This Means For You in 2024!
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- čas přidán 11. 07. 2024
- In this video, I discuss the newly released 2024 tax brackets by the IRS, which are adjusted for inflation. I'll explain how these changes may affect you and what steps you can take to reduce your taxes and prepare for 2024. We'll go through the tax brackets, deductions, and credits, and I'll provide examples of how you can optimize your tax strategy. Understanding these details can help you keep more money in your pocket and navigate the 2024 tax year effectively. If you have any questions or find this information valuable, please subscribe to my channel for more financial insights.
0:00 Intro
0:24 2024 Tax Brackets
1:55 2024 Standard Deductions
2:34 Simple Tax Calculator
4:18 Roth Vs. Traditional Retirement plan tax example
4:45 2024 Retirement Plan Limits
5:44 Tax Credit and Deductions
7:09 Retire Early
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2024 vs 2023 Tax Calculator…How much will you pay?
czcams.com/video/e5HgAoEO6dY/video.html
What are you using to test different scenarios and see what tax credits you would qualify for?
@@awjone0it's a program my firm uses to analyze tax returns for clients.
Yup. The amount of taxes taken out of my paycheck basically means i work nearly three months for free. We need to become the America of tea dumping again.
The tree needs watered
Where do you think those taxes go? If they weren't deducted from wages, they would be added onto something else. I don't think people realize how much taxes people in other countries pay. I don't think most Americans would want to live in the countries that pay less taxes.
@@dfranz3551 where do they go? Excellent question! Unfortunately our government wont let us see the receipts.
@@dfranz3551 Unfortunately, 13% of your tax dollars went to military industrial complex spending and 2% went to foreign aid. That is 1 for every 6 dollars spending is waste.
Making 6 figures sucks you’re right those people making minimum wage really must feel bad for you
Remember folks, if for example you earn 100k a year, you pay 10% on 23.2k, then 12% on 71.1k, then 22% on 5.7k. NOT 22% on 100k.
You forgot the standard deduction
@@stevebojo4378
OK, so in my example the 100k is after the standard deduction.
Is this how the IRS calculates it tho? Don’t they just tax the final amount by the tax bracket amount?
@@Shandryl74
There is no separate way from how the IRS calculates it. This is how its done.
No matter how times you tell people this, they simply won't understand, as shown in this exact comment thread. There must be some sort of intelligence barrier that makes this impossible to comprehend.
Countless people have told me, over the years, that they "stopped working overtime this year" because they don't want to screw themselves on their taxes by going into the next tax bracket. Early on, I always took the time to explain, now I just nod and smile.
Here's what most people don't realize: our federal tax system is designed to penalize salaried and hourly workers (with higher tax liability), while it rewards small business owners and real estate investors (with lower tax liability), for the same exact income. Essentially, workers are pulling the (tax) wagon while investors and business owners are riding in the wagon. Once I realized that, I became self-employed, earned much more income, and lowered my effective tax rate. It's no surprise that the folks riding in the wagon designed the system.
capital gain tax of 15% + 3.8% NIIT tax is usually higher than most worker's effective tax rate. The big difference is you don't pay social security/medicare tax but when you get old you won't have anything to collect either. I think it all mostly a wash.
How much do you think small business' make?
@@dmpi483 So, low income workers often pay zero federal income tax. It's the upper middle income workers (and above) who have an effective tax rate that's higher than their business owner or real estate investor counterparts. And yes, business owners do pay into social security and medicare. You can't just look at the capital gain tax rate and compare. They have several different ways to significantly reduce their taxable income. So with the same gross (spendable) income, their taxable income will be much lower.
@@chazman4461 Small businesses can net any amount from $1,000 /year to millions per year, and still be considered a "small business". My previous pool guy was clearing 6 figures in income from his "small business".
@chazman4461 anywhere from 50,000 100,000 to 1 million for small businesses
Forfeiting over 1/5 of your paycheck for other countries border security is insane.
thats the game that was set up at the start
It’s gonna get way worse
Obviously, 20% of your check doesn't go to border security for any country, but I get your point. Think of it this way, though: when one of America's allies is overrun by the enemy, it weakens NATO and America as well. It's cheaper for NATO to defend all members than to claw back lost ground.
@@DaveM-FFB keep telling that to yourself. Ukraine has no part in NATO.
Especially when we don’t secure our own!
22% for middle class earnings is insane
Fun fact we are getting taxed more than our founding fathers that had a whole revolution because they felt they were being taxed too much. If they time traveled to the modern day America in 2023 they'd be furious.
😎
find itemized deductions, any way you can
The bracket percentages are misleading, though. It's best to focus on the effective tax rate that you're actually paying, which is roughly half of your highest tax bracket.
The income tax is insane. Its theft. Why do people even put up with it? We need a tax revolution, unfortunately too many people believe in govt and that income taxes are necessary.
Tax you when you earn it, tax you when you spend it. No one says shit and just gets robbed
Great video for explaining tax brackets, excellent work!
First time i've watched a video of yours. Instant Like and Subscribe! Great content and visuals. Look forward to watching more of your videos in the future!
It is so downright depressing knowing roughly 1/5 of all the money I earn is forcibly stolen from me and spent destroying our own country. We truly are living in the endtimes of this once great nation. Very depressing 😒
*and money spent destroying OTHER countries*
Be quiet. It's not stolen and it's not destroying our country.
Amen. Our border is wide open and our govt is only concerned with border security for other countries while we’re forced to pay for it. What are they really trying to protect in Ukraine? I’m genuinely fearful of my kids’ future.
Welcome to the age of "Bidenomics!"
Wow brilliant my friend I wish I'd stumbled on to you sooner.... great information ✨
I don't usually comment, but this is great stuff. Thank you for sharing your hard work!
thank you!!!!
Excellent explanation about this topic. Finally I can understand it. Thanks a lot !
Well presented! Thank you!👍
Very well done!
I have an appointment today with my CPA. Were gouna see how much the IRS wants this year. I hate the IRS.
me too.
Plus the tax they take on the purchase you made with the money that they taxed you on already.
Great video....I just subscribe. I'll be watching your videos for more learning. Too bad we don't get raises that keep up with inflation huh? Anyway, appreciate the breakdown.
Thank you😮
thank you for this information sir.
Very clear delivery. Easy to learn what you are teaching.
thank you!
Your explanations are great. I retired this year, lowering my tax bracket from 24% to 10% (based on 2024) Now I'm able to convert my pre-tax IRA to my Roth owing only 10% or less in the conversion.
😎
Can you share a little bit more about conversions? So it’s better to save in a traditional IRA lower your tax bracket now and then you can covert it to a Roth later ?
Just be careful with drawing amounts if you are of Medicare age. They will ding you higher monthly insurance premiums, of both you and your spouse if file jointly. Something I was not aware of.
It is better to save in a 401k if you can, because the annual contribution limit is higher than a simple IRA plus you can get some employer match. You pay tax on the conversion amount at the same rate you will pay for just taking the money out of a 401k or deductible IRA. The only advantage to a Roth conversion after retirement, is if think you can make more in your Roth or you are betting on tax rates going up in the long term. If they stay the same or go down, you pay less taxes just pulling it out in small chunks every year than doing a large conversion.
@@jerrybarnes3104 Then your income is sufficient enough to go over the first threshold of IRMMA
Awesome comparison. I like your spreadsheet you are using. Is that available by any chance? I am trying to see what I need to save compared to what I want to do when my wife and I retire.
That was interesting. I didn't know tax worked like that. Thanks.
is it me or his bookshelf about to buckle? lol...... thanks for the information :D
This is the best explanation of effective tax rate I’ve heard. Thank you.
thank you!
@travissickle I really love your content thank you soooo much for educating.. I really wish if you could do a video on Virginia 529 plan please 🙏 we have a 11 month old and wanted to start a 529 plan this Christmas for his birthday ❤
Pre tax retirement will mean 100% of what is withdrawn (contribution plus market returns) will be taxed by you or whoever inherits the balance. If that is before social security or if you are currently in higher brackets it may benefit you, but if you're currently in the 22% or less you probably need to ratio the amount with post tax like a Roth IRA/401k because income in retirement affects Obamacare premiums, IRMAA penalty premiums on Medicare, your provisional income calculation for social security tax which hasn't been adjusted for inflation so it is based on the early 1990s meaning 50-85% of social security received may be taxed. And when the Trump tax cuts expire in a few years most of the brackets will revert back to higher rates so future tax rates will be 2-3% higher.
Each person's situation is different, but understand that younger workers will usually end up paying more taxes on pretax retirement in their later years because their wealth has grown. So if a young worker pays say 12% effective tax right now on $10k (1,200) and that grows to 100,000 they would not be taxed again on what is withdrawn. If that same person invested in pretax and they have just a 10% then they would pay at minimum up to 10,000. Other things to consider are if you're married and when one of you dies the other will now be in a single tax bracket and they'll be paying more in taxes versus MFJ and don't forget RMDs.
I'm not a financial advisor, but most should have a mix of pre and post tax retirement AND if you aren't using the pre- tax savings to pay down loans, invest in a taxable brokerage, college for kids or increase your pretax contribution by the tax savings for future taxes you are throwing away the tax savings and you will have more of a tax liability when you take out money unless your returns are way below normal market returns plus inflation. Again each person's situation varies and also where they live and where they will retire as well, but having a mix of different buckets to draw from and to competent fiduciary advisor will help you from making costly mistakes or doing large amounts of Roth Conversions when tax rates will be higher.
this is BS ... COLA is 3.2 and taxes went up 5.4 ... the GOV knew this in OCT ... vote for the Orange Man
Video is clear and informative about tax calculation
thank you
Thanks
thanks
Dude, I love the hexagon background. Where did you get that?
lol. Thanks. They’re sound panels. amzn.to/3T2o4oa
Thank you for the information. Any chance we can get that “quick tax calculator” spreadsheet you showed?
Aaaannnd just saw the first comment and where it is. Thank you
Very well done. Thanks. Follow up for retired taxpayers!
Great video. Can you share what you use to make the mouse cursor into the moveable red arrow? That is one of the best screen recording pointing methods I’ve seen!!
a plugin I use on my PC. makes editing the videos much easier and hopefully the audience likes it.
this is very helpful! I'm wondering if we can get access to your spreadsheets? they're very helpful to visually understand information. thanks!
Yes you can! It’s on my discord channel, link in description. It’s free access for CZcams Channel members. I’m posting all my spreadsheets there.
That a really nice spreadsheet you put together to calculate taxes. I hate the new version of the W4 ...far more complicated than the prior version where you select number of deductions and done.
Do not assume you’ll be in a lower marginal tax bracket when you retire. You have no way of knowing. As an aggressive saver in my 401K and IRA who is now retired, my RMDs and my income’s impact on my Social Security (plus IRMAA impacts) make me wish I had put more savings into Roth vehicles . But at the time I was focused on the tax impact during my working years without knowing the tax pitfalls during retirement because I fell for the idea that retirement tax rates will be lower.
So wait are you sying when you were working and saving you were making like 50K. Now that you are retired and making 25K you are paying more in tax? Man you must have some really high math skills here.
@@ernieellan5694 The surprising thing is our taxable income has not gone down after retirement. We currently have our two pensions, Social Security and Minimum Required Distributions from our large 401K holdings. We’re no longer maximizing 401K & IRA contributions to counteract earnings as we did in our working years. We’re no longer making significant charitable gifts to our Gift Trust but are now distributing those gifts. Until retirement I never understood how earnings above certain limits will decrease Social Security’s payment for Medicare. So, don’t blindly assume you’ll be in a lower marginal tax bracket when you retire.
@@kevinkendall2182 I can vouch for that. We’re both retired, not as well-situated as you are but doing OK. We both worked past retirement so RMDs kicked in rather soon after. We’ve only had 1 year out of ten when our combined incomes were less than before retirement.
I guess he forgot about the TCJA that lowered taxes for the majority of Americans Forgot about the tax brackets and IRMMA being adjusted every year for inflation
thanks for sharing the video. Can you share the Excel sheet?
Thanks for the breakdown! I thought I remember finding fillable PDF forms online where they automatically calculate for you years ago but can't find them. Have you seen these?
there are tons of calculators out there.
What software are you using to draw those arrows?
I dont know anyone who makes 100+ a year so we average American who only make 40+ cant relate to this. Thank you for the time in explaining.
Is the spreadsheet available for purchase? Don't want a monthly channel fee.
Can you share the spreadsheet for the tax deduction calculator?
What is the software you are using and is that something we can buy?
Thank you so much for your clear explanation. I always thought my whole income is taxed at the rate for the range it fell in, instead of staggered.
Glad it helped. The correct term is “progressive,” it’s a progressive tax system.
Taxes apply to adjusted gross income AFTER the standard deduction. If a large part of your income is from social security for a couple, AGI generally far below standard deduction. Taxes =0%….
I cant find the 2024 spreadsheet resources for download, where are they?
Hey Travis watching another of your videos if you just fill out the top and sign the W4 its auto calculated. Saying that if filling joint does spouse do the same ? Can they opt to input an amount that would be extra ?
I have watched alot of your videos and understand its better to use the calculator but,, Im wondering if the just sign it method is closer to the fold filling 0 to make sure you get a return ? I ask because this year I took a leave of absence for almost 3 months and going back to work 12/13 and not sure if I input the information it will give me the correct answer. Thanks for your help
Under the table money is always the best. Only way I rock.😎
Great video. Do you have those spread sheet calculators available for share?
How about just make them? Not only will you have what you want, but you'll have a better understanding of how they work and what goes into the calculations.
I feel like my tax preparation is going to up this year negating any saving I would have made
off topic, but who did that cool wall behind you? is that tile? wood?
Any chance you would share the excel spreadsheet that you created and show at timestamp 2:40?
Yes, I’ll put it on the discord channel, link in description. It’s free for channel members.
in spite of living 20 some years in USA i didn't know that tax brackets i was thinking flat % one bracket on total earnings that gets applied to indiviual
Do you have a link for that calculator you built?
All links are on the discord channel. check the video description.
What was did u use to create the different scenarios? Would like to try it out for myself
Program we use for our clients.
Before income tax was a thing, there was just a consumption tax (mostly on booze). Income tax came out of prohibition. Since prohibition was repealed, so should the income tax.
Huh, prohibition was before 1861?
Because in 1861 Congress placed a flat 3% tax on all incomes over $800 and later modified this principle to include a graduated tax. It was repealed in 1872.
The income tax as we know it started in 1913, corporate taxes was 1909. The 1913 tax started to finance World War 1.
Nope. Passed Congress in 1909 and ratified in 2013 which was before prohibition which started in 1920 and ended in 1933.
@@jainthorne4136 My argument stands. If it wasn't ratified until 100 years later then it should not have existed at all. Repeal the Federal income tax.
@@erich6860 I didn't mention the 1861 because it was repealed. Just like the Federal income tax should be as well.
@@stevebojo4378 That's fine, but the income tax still existed before prohibition.
How much money do you have to make in a year to to have to report it to the IRS
Man i wish we had this low tax rates up here in canada
For those of us in a state that has state income tax as well- all the best!
good god, we got taxed to hell and back last year through state tax.
How about a Commonweath tax? My state isn't even a state! Why I am I paying a Federal tax for a union that I am not part of?
Thanks my husband and I need it. We live in CA. 😬.
I'm in Texas, no state income tax. Sales and property taxes absolutely blasted our asses, though.
Can you share the excel sheet templates?
Simplified Form: "How much did you make"
IRS: Send it to us.
How much for the spreadsheet
Thanks
Is the tax calculator spreadsheet available for download by the way
Great representation! Can we get access to your excel sheet?
Yes, link in description. It’s on discord channel, which is free for CZcams members to download.
Really wished all the unhelpful comments would go away.
Thanks for explaining this, i had no idea the brackets changed with inflation.
Is that for your federal taxes only or everything combined? Does this scale apply to all taxes like ss tax?
Yes, just the federal taxes. The Social Security and Medicare tax is a set percentage of your wages. Your state tax rate depends on were you live.
At 6:17 you made the single filer have a spouse!
That's great info especially the information about the effective tax rate. I'm more in tune on how that works now, but it doesn't help that most of tax money is wasted by these filthy bureaucrats.
How do you set up a pre-taxed Roth IRA? If your work doesn’t offer any type of retirement or 401(k)? Is that something that goes through your HR department or you do it at the end of the year and report it to the IRS
it's possible. reach out to our office if you need help.
A pre-taxed Roth IRA?
When you make money from your job, you pay income taxes.
That IS the pre-tax step.
You can then take the left over money (this is what your employer ends up writing your check amount for), and do with it what you wish.
Pay bills, rent, buy food, etc.
You can also put it into a Roth IRA!
Up to $7,000 a year starting in 2024. (And until March-April of 2024 you can still invest the $6,500 max amount for 2023).
It's as simple as going to a brokers website and making the account, Fidelity as an example (there are many).
You just deposit the money and invest in the markets.
Any gains you end up with will be tax-free AS LONG AS you do not withdraw the gains before you are of retirement age.
The basis is already taxed though, you already paid for it.
You don't have to put in all the money at once, you can put in $500 a month, or $5 a month, or $7,000 one time, doesn't matter, just can't put in more than so much a year (there's a ceiling on it).
Honestly all income under $50k should be tax free since you will pay a bunch of taxes (sales etc) already just by paying living expenses.
Thank for the video great information
So can I get a suggestion on
How to get setup
Single and married with $240k
What’s the best way to setup my 401k and maximize my tax deductions
How can i get access to that system you are utilizing to plan out scenarios?
We use it in our practice for our clients. The google sheet is available on the discord channel. Free for channel members.
I can't file 2022 or 2023 taxes until i get my 2021 tax return back from the IRS. All because of a programming error.
Thank you for this information. Question for the future is what happens after the tax cuts expire in 2025?
You'll be broke under Trump as he plans to be dictator and take all the money from the stock market as well as crypto. Trump plans a 75% tax on everyone and businesses.
Using American Terminology, Australia has a Tax Free Threshold (Standard Deduction) of $18,200 for a single person BUT it's applied instantly (by calculation of projected earnings) which means the first $18,200 is NOT taxed in the first place leaving you more money in you pay check each pay day.
this is for US.
That 12 to 22% is crazy.
Wait til the TCJA expires. Its going to be bad
@@skeezix8156 Hopefully they will extend it past end of 2025
Are the spreadsheets you use available publicly?
Channel members can get it on discord. Check pinned comment at top.
I can’t believe the 10% tax jump on single @47,250. 12to 22% ouch. The middle class gets hit the hardest. IRS has it wrong like normal.
You have to go over $100,000 to start the 22% Remember you have a standard deduction of $14,600 in 2024 for when you file in 2025. If you make $115,000 you pay the 22% on the $400 only
@@Satjr35031 This could be repeated 10000 times, and they would still not understand lol
Any way you could make this spreadsheet available to us? I'd love it to explain to my children.
Added on the discord channel which is free for channel members.
JUST TAKE A PICTURE OF THE ABOVE FRAME !!! WHY DO YOU NEED IT DISHED OUT TO YOU. IN ANOTHER WEEK YOU CAN GET A HARD COPY FROM THE BIDEN ADMIN
If nearly all utilities are privatized, "public" transportation is a paid service and the best roads are owned by corporations for whom we pay tolls...
-
Why are we paying taxes?
-
Taxation without representation.
Maybe
We pay taxes to fund all those vouchers the breeders claim to need -
You could not be more misinformed.
@@DJSolistica Enlighten me.
This is just federal tax. After federal tax, we still need to pay state tax, property tax, sale tax, medical tax, etc…😔
So some Family moving to a state without state income tax like Nevada florida Washington
I live in a tent. have public wi fi free food
How did we calculate the 13,841? Only part I’m lost on
It’s the effective tax nvm
can someone help explain how he determined the 35,550 and 38,250? I understand they contribute to the 85,400 total but can't seem to understand. Thank you in advance!
Become a channel member and I can dig in more to explain.
It never made sense to me to calculate your effective tax rate using your "taxable income" instead of "gross income". The metric that's important to me is "what percentage of my gross income am I required to pay in federal taxes?" That's the percentage I don't get to keep.
Well based on your previous comment, it's because you are a business owner?
The rest of us indentured servants, get to keep more money in our pockets if some of our biggest monthly expenses (Healthcare, retirement, daycare, etc.) Arnt calculated as part of our taxable income.
What?? That makes no sense. Why would you figure it on your gross income when you are only taxed on your taxable income. (Taxable Income - your Adgusted Gross Income minus your Standard/Itemized Deduction) Using your Gross income would make your percentage all wrong.
@dfranz3551 Actually, I personally calculate my effective tax rate using my adjusted gross income (which includes business profits). Here's my logic. If we weren't required to pay any federal income tax, our take-home pay (income) would be 100% of adjusted gross income (AGI), which is income from all sources. So our effective tax rate would be zero. Whatever federal income tax that we are required to pay is a percentage of our income from all sources (AGI). If I receive $1,000 (AGI) and I owe $100 in federal tax, my effective tax rate is 10%. That's how I see it.
@@dfranz3551to know how much of my income as an effective % went to tax. How much of a % of a arbitrary % isn't as useful for me over time as the deductions and my tax situations change, I'm personally interested in my real effective paid tax rate.
Edit: to be clear I think your confusion may be thinking we're counting sheltered retirement acointe that will be taxed later, negative we poor folk aren't sheltering like that. In the videos example and in all "effective rate" maths the deduction(s) isn't factored and that's the main thing I think folks wanting a "true effective" are trying to math out. I still earned that $14k and didn't pay tax on it. To me the video examples "true effective"(making that term up on the fly btw) rate would be more like 13% than 16%. He didn't show any complex sheltered acounts or Ira savings etc just $13k in taxes on $100k income. I'm no mathematician but if that's me I feel like I payed 13% not 16%.
this is BS ... COLA is 3.2 and taxes went up 5.4 ... the GOV knew this in OCT ... vote for the Orange Man
HMMM!
From 1st to 2nd bracket 2% difference= O.K
From 2nd to 3rd 10% difference?
So, if I earn $44,726.00, I have to pay 10% more, just for that $1 difference.
Then after that the difference becomes 2%,8%,3% and finally 2% respectively.
Does that make sense?
It doesn’t, because that’s not how the brackets work. You only have to pay mover on $$ earned ABOVE the bracket threshold, not on everything.
So if your income goes up by say $10,000 above that $44.7K you only pay extra on the $10,000 not on the whole $54.7K.
But yeah I think the differences between brackets are idiotic.
Can you share the spreadsheet
It's free for CZcams Members.
So how the hell am I, as a single, is paying, like last year, I made 95k. And my federal alone was 28k. Is a lot of overtime actually that damning on the calculations? I worked for a smaller company where I had no company deductions but at the end of the year my total deductions were 48%.
I am getting so screwed.
hire an accountant / tax preparer.
@@BassRacerx the last time I did that, they had me paying an extra 2 grand and wanting 500 Bucks to basically do a TurboTax forms.
Man I wish I was smart enough to understand microbiology.
We have a tax proffesional to do our stuff. We found out that Turbo tax and some of the others have screwed us in the past. I would look around and get some different opinions from other tax proffesionals.
That makes 0 sense. Even if you include FICA that still makes no sense. It sounds like your job is not calculating your taxes properly, and whoever is doing your yearly tax return is screwing you over out of thousands of dollars. Get another tax preparer cause this one you had screwed you. Last year I made around the same as you. My federal was about 15k excluding social security and Medicare. My total taxes were about 27k but keep in mind I pay state tax also being in NY. I also got some money back but I own a house as well.
Yah, that does not make sense.
Hi my name is David, I'm American citizen, my question is that could i claim care tex for my child who lives outside of US but he got American passport and social security card card,
Please I really need know about that thank you 🙏
Clear as mud.
MATH HARD
Wished they teach stuff like this in school. This is mind blowing information. Wait, what about the rich people. Why they don't pay much?.
It’s deliberately not taught.
The top 1% of earners in the USA pay over 80% of ALL taxes that the US government collects.
So please, enlighten us as to how the rich don't pay any taxes?
Stating the country which this applies to would be nice.
Zimbabwe
The tax system in the USA taxes income and not wealth. Build wealth correctly and it can in effect be almost tax free. I love the smell of captalism in the morning!
A sight for sore eyes, somebody with actual financial intelligence!
No change for us 😕
Can you share your tax bracket excel/sheet?
Yes, it’s on discord. Link in description. Check the pinned post too.
0:41 we don’t have one since the weather don’t pay their fair share. 0:41
Soooo if my year in check shows i paid 18k in federal taxes but the standard deduction is 14k then my refund is 4k?
no, a deduction reduces your taxable income. A tax CREDIT reduces your tax liability.
Just get it man….
The Tax rates shown are always falsely given by the IRS. We also pay social security and medicare tax. I don't understand why these taxes are not configured in our overall tax rate.
Not all income is subject to those taxes.
The problem is that the government only want's you to focus on federal taxes. Which is not a true tax outcome. If you add fed, state, medicare, and OASDI. Then My true tax is 26.5% of my paycheck. Also anything forced on Americans is also a tax in my opinion. Heath, car, home insurance. Property tax, gas tax, sales tax etc. If you add all this up I get to keep a lot less than 1/2 of my wages. That's over 50% of my income. We also pay tax on cable, gas, electric, water, tolls etc. It would not surprise me if added all together it would be over 60%. Most people's retirement
Right! taxes are everywhere and it's terrible.
It's what you're doing with that remaining 40% that makes all the difference in the world.
Now imagine if the corporate tax structure was the same way!
Yeah, I suggested any company making a profit before R&D must pay profit taxes then R&D is limited to a max of 40% of those profits as write off.