Quote:
Originally Posted by d-ray657
It's gonna take both taxes and cuts. Your numbers sound fishy to me. What is the 44.6% composed of? Most of the numbers I've seen shows that actual rate collected from the top incomes in the 20's.
Regards,
D-Ray
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Current Highest Federal income tax rate = 35%
FICA Tax = 6.2%
Medicare Tax = 1.45%
Total tax on income - 42.65
Under PPACA, the Medicare tax will increase to 2.35% for income earned over $200K. Total income tax = 43.35%
That's the story for taxes on income. Individuals who have a combination of W-2 income and investment income (or just investment income) will pay an additional Medicare tax of 3.8% under changes enacted by PPACA. This could push their total tax rate up towards the 44.6% level.