SterCrazy Wrote:
Sep 27, 2012 1:34 AM
Until my wife and I passed the $120,000 gross income level, we were paying 8.5-10 percent in Federal Income Taxes. Anyone else who has stopped and figured how much of their gross income they paid in income taxes knows the same thing. What we also nee to figure in is the "hidden" nearly 8% tax every wage earner pays in Social Security and Medicaid/Medicare that they never even see - its paid by the employer but is part of our real salary. The self-employed know it, though. They have to write checks for it. So my Federal Tax is really closer to 23%. Then there is my share of multitudes of taxes paid by businesses - gasoline, business taxes, compliance costs, etc. These are regressive taxes that decrease our usable income.