Compilation of already published Articles/Ideas/Problems-Solutions which I faced or came across over the period of time. Largely a place for me to document it as note-to-self. Nothing serious. :)
Sunday, October 13, 2013
The Average Tax Rate Top 20% Wealthy Will Pay In 2013 Is 28.1%
It’s that time of year to estimate what you owe Uncle Sam. Thankfully, the TaxPolicy Center has adjusted its effective tax rates for 2013 under the new Obama-Boehner tax law.
As we know the top 0.1%–some 300,000 households will be paying the top rate of 39.6%. The cutoff point is $450,000 income for a family, $400,000 for a single person.
The top 1% or about 3 million households will ante in 36.9%.
The 5% of households in the next tax cohort (95-99 percentile)– some 15 million tax returns– will be asked to pay 26.3%.
Then, the 90th to the 95th percentile will be paying 23.4%. And the next 10% of households, or 30 million tax returns will be paying an effective federal tax rate of 21.5%
Overall, the top 20% of earning households, or 60 million tax returns will be paying on average a tax rate of 28.1%. And this rate will be increased by the combined state and local taxes that will be owed.
The other 80% of American tax payers, divided into 20% segments, will be asked to pay 19.0%, 15.6%, 9.5% and finally 1.9%.