scott1961 said:lorcha said:

but again, you benefit much more from the government's protection of your property rights than some poor sap's child tax credit.

Have to disagree with that, This is America and every citizen is granted the same rights and protections. Sure I could do better but that would only be because I could afford better legal consul. If anything I am cheaper to maintain than the poor saps, You will never see me on cops shirtless and drunk.

This is an interesting thread. What about the National Parks? Every American benefits from the
National Parks, but some benefit more than others. People with means may be able to enjoy
Yellowstone this year or next. People living pay check to pay check may get satifaction knowing
their children's children may enjoy Yellowstone.

If I am ever on Cops, shirtless and drunk or otherwise, I hope it is from Yellowstone.

JesseLivermore said:
On a separate note, some people in here have either found the Holy Grail of incredibly brilliant tax planning, that has escaped even true financial geniuses, or I have no idea what's up...
This is the thread to get around the income bragging unwritten rule, and it comes with it's own special makin' stuff up bonus, tax rates.

5.4% federal, 2.7% combined Multi-states

$23.5k in Wage Income
$15k in Traditional IRA Withdrawal (I'm 28, but no penalty due to school expenses)
$39k AGI

Next year my rate will prob go up, since I only worked for 3 1/2 months this year.

lorcha said:kamalktk said:This is the thread to get around the income bragging unwritten rule, and it comes with it's own special makin' stuff up bonus, tax rates.Yeah, I still don't think I'm going to reveal my AGI, but I'll post my tax rate once it's computed.
Just the tax rate and what types of deductions and credits were used could be useful, but saying "oh I made a million and only paid 10%" doesn't really help anyone.

Federal 22.82%
State (NEW YORK)6.5%
$5019.00 in AMT

only in america can people make upper middle class money and pay no federal income taxes. too many people in this thread make similar money and have comepletely different effective tax rates. i don't mind a graduated rate table, but effective rates should be very close for people making the same money, regardless of where they live of how big their family is. government subsized procreation is crazy.

JesseLivermore said:On a separate note, some people in here have either found the Holy Grail of incredibly brilliant tax planning, that has escaped even true financial geniuses, or I have no idea what's up...

I mean, less than 15% tax liability on gross incomes in excess of 100k, and in some cases 300k or more???

Assume $120k income for a family of 3.

$120k gross
-12k 401k
-4k healthcare premiums
-8k FSA accounts
-10k personal exemptions (3,400 x 3)
-18k mortgage interest (300k at 6%)
-6k state/local income and property taxes
= 62k taxable income
$8,500 tax - $1k child credit = $7,500 tax = 6.25%

No financial plan needed.

calvinandhobbes said:only in america can people make upper middle class money and pay no federal income taxes. too many people in this thread make similar money and have comepletely different effective tax rates. i don't mind a graduated rate table, but effective rates should be very close for people making the same money, regardless of where they live of how big their family is. government subsized procreation is crazy.

$3400 exempted from income and a $1000 credit each year isn't much of a subsidy when you look at what children cost to raise.

ShavenYak said:$3400 exempted from income and a $1000 credit each year isn't much of a subsidy when you look at what children cost to raise.Well, that's tax on roughly $10000 income, per child, that you don't have to pay that we have to make up for a choice you made, not me. I'll pay for my choices, you pay for yours.

I'm not saying the subsidy pays for raising a child. Far, far from it. But why on earth should we pay for your choices? If somebody wants 3, 4, or 5 kids, great, go for it. But do so if you can afford it. Same with mortgage interest deduction. Sure, housing is a boost to the economy, but so is every legitimate business. I like scuba diving. Should my gear be tax deductible since it helps the economy? What about those that can't dive or don't want to. Why should their taxes be higher to account for my expenses.

Everyone's tax rates are higher to make up for all the credits and deductions. I'd love to see them all eliminated, and see the real rates fall. Sure, your taxes would go up and mine would fall, but why should different people with equal income pay VASTLY (read: 3 times) different tax rates? It's insane.

19.2% federal tax. No Kids. No mortgage. No AMT (barely).

I suprised how little tax some of you pay. I got to figure out how you guys do that.

8.3% Federal
2.3% State

$15.5K 401k
$3k FSA
One child

property taxes and mortgage interest for 11 months (moved in December; paid January 2007 in December 2006 assuming I would move in 2007)

I guess I need to up my charitable donations in 2008.

EDIT: Wrong State Tax Rate