Check this thing out. It’s a calculator that takes your yearly income and shows you the breakdown of what your taxes paid for (if you file the 1040EZ). It even shows what your salary would have paid for in the individual years from 1940 to 2010. Very cool.
Found via Get Rich Slowly, which has a corresponding article linked to his individual research. Also, the comments on both articles are worth reading for those of you interested in finances like I am.
Are there other taxes you pay? Like state taxes?
I put any random paystub I found on my desk’s amount in there and got a 16% tax rate vs what I actually paid, which was around 27%, but we have federal and provincial income tax taken off…
p.s. that was wicked cool.
We have state taxes, county taxes, and property taxes too. The chart was just for the federal taxes. It’d be interesting if they did a state by state breakdown but I imagine that’s a ton more research than they want to do, seeing as how every state has a different system.
Ah, so unless your state taxes and county taxes come to lower than 11%ish, we’re pretty well the same? We have municipal taxes (property taxes) too. And where you guys have state tax on stuff you buy, we have the GST which is on everything but non-necessities and PST, which is on everything but non-necessities and books. GST is 5% and in my province, PST is 7.5% charged on the total after the GST is already calculated… Tax on tax.
taxtaxtax…
Wait. Everything but necessities. Non-necessities are the things that are taxed. :D