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re: Well I just noticed on my online banking / payroll tax increase
Posted on 1/12/13 at 12:16 am to MikeBRLA
Posted on 1/12/13 at 12:16 am to MikeBRLA
quote:Taxes are a function of the tax rate and the tax base. The tax rate was increased by 47%, but the tax base only extends to $113,700. So the revenue increase is 47% on the first $113,700, but there was zero increase on income above that. Thus the increase in tax revenue will be less than 47%. Don't let the % fool you as to the total economic effect as it can also be misleading.
It went from 4.2 to 6.2 which is a 47% increase. Don't let the fact that the "unit of measure" is % fool you. It went up 47%
2
Posted on 1/12/13 at 1:15 am to Poodlebrain
Not to the posters watching Fox News.
Posted on 1/12/13 at 7:19 am to Poodlebrain
quote:
Taxes are a function of the tax rate and the tax base. The tax rate was increased by 47%, but the tax base only extends to $113,700. So the revenue increase is 47% on the first $113,700, but there was zero increase on income above that. Thus the increase in tax revenue will be less than 47%. Don't let the % fool you as to the total economic effect as it can also be misleading.
Let's say I made over $110,000 last year and maxed out my SS contributions at $4,624.20 and this year will max out at $7,049.40. That increases my contributions by 52%. Not everyone will be hit that hard but that's a pretty substantial increase from last year to this year for the people making $113,700.
This post was edited on 1/12/13 at 7:24 am
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