Income & Taxes
| Corporate Tax Rate | |
|---|---|
| Rate | Taxable Income |
| 15% | $0-50,000 |
| 25% | 50,001-75,000 |
| 34% | 75,001-100,000 |
| 39% | 100,001-335,000 |
| 34% | 335,001-10,000,000 |
| 35% | 10,000,001-15,000,000 |
| 38% | 15,000,001-18,333,333 |
| 35% | Over 18,333,333 |
Personal service corporations pay a flat 35%
[Yes, the table is correct and things are that screwed up.]
| Single Tax Rate | |
|---|---|
| Rate | Taxable Income |
| 10% | $0 – 7,825 |
| 15% | 7,826 – 31,850 |
| 25% | 31,851 – 77,100 |
| 28% | 77,101 – 160,850 |
| 33% | 160,851 – 349,700 |
| 35% | Over $349,700 |
The Standard Deduction is $5,350 and the Personal Exemption is $3,400, so the first $8,750 isn’t actually subject to any income tax.
The Social Security tax is 6.20% on the first $97,500, and nothing above that, and the Medicare tax is 1.45% on every penny you make. Your employer pays an equal amount. The self-employed pay both halves, but get to deduct the employer’s half from the amount of taxable income for income tax purposes.
The Federal minimum wage went up from $5.85 to $6.55 on July 24th, and with go up to $7.15 next July 24th. [To equal the $1.25 minimum wage I received in 1964 it would have to be around $12.]
The Federal Poverty level for an individual is $10,400[lower 48], $13,000[Alaska], and $11,960[Hawaii]. [Yes, Alaska really is that much more expensive.]
| Household Income Range | |
|---|---|
| Quintile | Income |
| 1 | $0-18,500 |
| 2 | $18,501-34,738 |
| 3 | $34,739-55,331 |
| 4 | $55,332-88,030 |
| 5 | Over $88,030 |
The top 5% are over $157,176 and the top 1% are over $350,000.
8 comments
i had no idea corporate taxes were that screwy. what’s the justification?
It must reflect who has power in Congressional offices because there damn sure isn’t a logical pattern involved in the levels or the rates, not that most corporations pay any taxes.
That’s easy. Most Corp. execs are on the ‘335,001-10,000,000’ pay scale obviously. 🙂 And the *wannabe’s* are probably on ‘100,001-335,000’, just to remind them who the boss is. LOL
As always, it’s about who benefits the most. *Way things are*(tm) 😉
The “$335,000” and “18,333,000” are just weird. Why not $500K and $20M. Why jump from 15% to 25%, but then go to 34% and end up at 39%. The whole chart is squirrely.
I may be remembering incorrectly, but I think a lot of the oddities may have begun in the Reagan era, and have worsened recently. I believe it was Reagan who first discovered the constitutional right to be rich… or poor… but nothing in between.
The up-and-down steps for corporations are as bad as the greens on one of those holes at a putt-putt golf course. The drop at $18.3 megabucks must have been inserted by a tame member of Congress at the behest of a corp run by a major campaign contributor. The burden really is on smaller corp’s now, isn’t it. At least individual rates are monotone nondecreasing… and presumably will remain that way unless McCain gets hold of them.
(As I reread the above, it seems kind of scrambled, but I’m too weary to rewrite it…)
Neither makes much sense in the real world.
On the individual side the place for a jump is at $100K after Social Security drops off. A 5% increase then would be invisible in take home.
The corporate rates were diddled a lot under Reagan, but I don’t remember the “twin peaks” or the weird amounts and I worked on a lot of tax software [big iron stuff] at the time. This has to be special legislation, because no one working with taxes would do something this odd on their own, it makes things too complicated for audits or writing software. Accountants and programmers like logical progressions and round numbers.
LOL You know, of course, that logic (or justice, fairness, common sense etc) have nothing whatsoever to do with Politics in the USA (in the past several decades anyway). It’s all about who can get away with what and when. If they could, those corporate tax rates would be 0%. But they couldn’t get away with that, so they devise the most complex system on the planet so they can use every bit of trickery and skulduggery to take advantage of the loopholes (which many of the Exec’s made sure were present) to pay almost no tax at all in reality. The *ordinary* people could do it too… if they had the money. LOL It’s simply amazing how much money the Corporate criminals will pay to avoid paying tax! I wonder if they actually save that much in the end. 🙂
Don’t forget… Most of your Politicians are members of the *Thieving Corporate Executive Criminals* club. 🙂 Why expect anything to be fair and balanced? 🙂
But… reality sux… so, just call me cynical. LOL
The majority of large corporations in this country haven’t paid any taxes for years and they have shifted all of the manufacturing jobs overseas. They are leeches on the economy.