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  • #1

    What is your annual tax rate?

    I'm curious if anyone has ever calculated their annual tax rate, which I'm defining as total taxes paid divided by income earned?

    Definition of total taxes would be all sales taxes, property taxes, income taxes, use taxes, gas taxes, payroll related taxes, etc. You could make a case to also lump all government imposed fees as well, although technically they are not taxes.

    I tried to estimate my annual tax rate and it seems to be somewhere around30% which seems pretty darn high.

    Just curious what the annual tax rate would be for most of us.
    "Discipleship is not a spectator sport. We cannot expect to experience the blessing of faith by standing inactive on the sidelines any more than we can experience the benefits of health by sitting on a sofa watching sporting events on television and giving advice to the athletes. And yet for some, “spectator discipleship” is a preferred if not primary way of worshipping." -Pres. Uchtdorf
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  • #2
    Originally posted by Eddie Jones View Post
    I'm curious if anyone has ever calculated their annual tax rate, which I'm defining as total taxes paid divided by income earned?

    Definition of total taxes would be all sales taxes, property taxes, income taxes, use taxes, gas taxes, payroll related taxes, etc. You could make a case to also lump all government imposed fees as well, although technically they are not taxes.

    I tried to estimate my annual tax rate and it seems to be somewhere around30% which seems pretty darn high.

    Just curious what the annual tax rate would be for most of us.
    That seems really hard to calculate, but just off some rough figures, I would put it around 35-40%.
    At least the Big Ten went after a big-time addition in Nebraska; the Pac-10 wanted a game so badly, it added Utah
    -Berry Trammel, 12/3/10

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    • #3
      I know that on my last few tax returns, my effective income tax rate has been around 8-9%. I don't make much money; I guess low income tax rate is the benefit to that.

      As far as sales tax and all other taxes, I have heard it said that we in the good ol' US of A experience a higher overall tax burden than many European states.

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      • #4
        Originally posted by I.J. Reilly View Post
        I know that on my last few tax returns, my effective income tax rate has been around 8-9%. I don't make much money; I guess low income tax rate is the benefit to that.

        As far as sales tax and all other taxes, I have heard it said that we in the good ol' US of A experience a higher overall tax burden than many European states.
        For me the last couple of years I have paid no income taxes and have actually had a negative ETR thanks to refundable credits like the additional child tax credit. But I have definitely made up for it in property taxes.

        However this year will be much different as my ETR will probably be along the lines of 5% to 10%.

        I guess the interesting thing about taxes in this country is we fight so much on the income tax rate but we tend to ignore other taxes that impact us even more than we think.
        "Discipleship is not a spectator sport. We cannot expect to experience the blessing of faith by standing inactive on the sidelines any more than we can experience the benefits of health by sitting on a sofa watching sporting events on television and giving advice to the athletes. And yet for some, “spectator discipleship” is a preferred if not primary way of worshipping." -Pres. Uchtdorf

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        • #5
          Let's see...

          ~22% on Federal Income Taxes (thank you AMT!)
          ~15% in Social Security (yes I count the whole thing, not just 'my half')
          ~5% to the great state of Utah
          ~2% in property tax

          ~44% - if you allow me to count my actual contribution to SS. about 37% if you do not...

          And - figure that of the 56% left over, about 50% of that is spent in some other area where I get to pay taxes - let's just count the sales tax portion ~8% of that in taxes. So add another ~4% to the total. 48% / 41% in total taxes...

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          • #6
            Originally posted by Eddie Jones View Post
            I'm curious if anyone has ever calculated their annual tax rate, which I'm defining as total taxes paid divided by income earned?

            Definition of total taxes would be all sales taxes, property taxes, income taxes, use taxes, gas taxes, payroll related taxes, etc. You could make a case to also lump all government imposed fees as well, although technically they are not taxes.

            I tried to estimate my annual tax rate and it seems to be somewhere around30% which seems pretty darn high.

            Just curious what the annual tax rate would be for most of us.
            Total taxes divided by total gross income?

            With five kids, tithing, a mortgage, and pre-tax stuff like 401K, HSA, I'll barely pay any income tax at all totaling fed and state. I doubt the use stuff comes to 5% of my income. Social Security is probably my biggest hit.

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            • #7
              Originally posted by statman View Post
              Let's see...

              ~22% on Federal Income Taxes (thank you AMT!)
              ~15% in Social Security (yes I count the whole thing, not just 'my half')
              ~5% to the great state of Utah
              ~2% in property tax

              ~44% - if you allow me to count my actual contribution to SS. about 37% if you do not...

              And - figure that of the 56% left over, about 50% of that is spent in some other area where I get to pay taxes - let's just count the sales tax portion ~8% of that in taxes. So add another ~4% to the total. 48% / 41% in total taxes...
              That's an excellent breakdown and was kind of how I came up with 30%. I wouldn't count the other 6.2% of SS just because I don't pay it (not self-employed), although I understand the argument that if your employer didn't have to pay it your salary would likely be higher.

              Here's my breakdown:

              10% fed income tax (some big events this year so not sure where it will shake out)
              8% SS and Medicare
              7% property tax
              5% sales tax and other stuff (gas tax, cell phone taxes, etc.)
              30% total
              "Discipleship is not a spectator sport. We cannot expect to experience the blessing of faith by standing inactive on the sidelines any more than we can experience the benefits of health by sitting on a sofa watching sporting events on television and giving advice to the athletes. And yet for some, “spectator discipleship” is a preferred if not primary way of worshipping." -Pres. Uchtdorf

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              • #8
                Originally posted by Eddie Jones View Post
                I'm curious if anyone has ever calculated their annual tax rate, which I'm defining as total taxes paid divided by income earned?

                Definition of total taxes would be all sales taxes, property taxes, income taxes, use taxes, gas taxes, payroll related taxes, etc. You could make a case to also lump all government imposed fees as well, although technically they are not taxes.

                I tried to estimate my annual tax rate and it seems to be somewhere around30% which seems pretty darn high.

                Just curious what the annual tax rate would be for most of us.
                That would be really hard to figure. Let's say my marginal rate is 36%. What if I have 30% of my income deferred, I don't pay taxes on that, but I will someday.

                What do you do to figure sales, property, those stupid taxes they charge at airprots and hotels? Add them all up and divide by your total income or income after deductions.

                It would be pretty hard to come up with a figure, but I guess I would be sick to my stomache.

                I know I paid many times in income taxes last year what I made my first year out of college. I don't know if I am madder at what I pay in income taxes now or how little I made when I got out of college.

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                • #9
                  This is interesting. Essentially what we're saying is for our society to function within the parameters we set, we need to take around 35-40% of every wage earner's income.

                  I wonder if this is true for smaller communities, or villages and towns from centuries ago. Did they require that much from the well-to-do members of society to thrive? Or did they just let things go to pot... poverty, cleanliness, crime, etc.

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