Obama's tax rate - 18%

[kgbsquirrel]

Even including FICA, state taxes, no deductions (beyond standard), etc that bill still sounds unbelievable and WAAAYYYY too high.

$20k AGI, take out standard deduction of, what, $9k.  Fed taxes are 10% up to around 15k I think for singles, so you'd still be in that bracket.  There's $1100.  FICA would be $1500ish.  I can't imagine CO state taxes being even as much as FICA, but let's call that another $1500, just to be overly conservative.  That still only adds up to $4100, and being reasonble with state tax is probably more like $3000.

What am I missing (besides something from the many deductions/credits that can probably be found)?

One moment while I pull up my return.....  aha, here's the problem, I used the wrong term. Not AGI, "taxable income". My bad.   And standard deduction is only $5k and change, not $9k, and on top of that I managed to qualify for NO other exemptions or deductions.

[TommyGunn]

Actually, it was much worse pre-Reagan. There were more deductions (credit card interest, for example) to effectively bring down high tax rates, but the amount of work was ridiculous. You had to keep every receipt and add up all sorts of deductions. Reducing tax rates and eliminating deductions made doing taxes a lot easier.

I can remember my father and maternal grandfather complaining about having to keep every last receopt from a three-martini business lunch -- and every other record -- and ....well, as you said, it was "ridiculous."
When the top tax rate was was 91% though it was usually worth it.

[Tallpine]

I can remember my father and maternal grandfather complaining about having to keep every last receopt from a three-martini business lunch -- and every other record -- and ....well, as you said, it was "ridiculous."
When the top tax rate was was 91% though it was usually worth it.

If you have a business then you pretty much have to keep every receipt.

[Northwoods]

One moment while I pull up my return.....  aha, here's the problem, I used the wrong term. Not AGI, "taxable income". My bad.  And standard deduction is only $5k and change, not $9k, and on top of that I managed to qualify for NO other exemptions or deductions.

So, when you calculate you taxes based on AGI what does that drop the % down to?

[kgbsquirrel]

So, when you calculate you taxes based on AGI what does that drop the % down to?

*tapity-tap-tap goes the calculator* Well I'll be damned. 18%. Does this mean I can't complain about obama anymore? 

[Tallpine]

Rich folks have mostly "unearned income" (a tax term, not a qualitative term) so they don't have to pay SS/MC taxes.

The SS/MC deduction is capped anyway.  I forget what the limit is.

[Northwoods]

SS maxes out at an income around $108k.  Don't remember the exact number.  MC is not capped at all.

[Tallpine]

SS maxes out at an income around $108k.  Don't remember the exact number.  MC is not capped at all.

Yeah, that's probably right.  I have tried very hard to forget most everything I learned about the tax code.

[Monkeyleg]

SS maxes out at an income around $108k.

For now. When and if DC "fixes" SS, you can add another three zeroes to that.