This is MARGINAL tax rates. This does NOT account for capital gains taxes or deductions and loophole. You are pretty naive if you believe the 'rich' are paying that rate on all of their income. If you start looking into it, you will find the top effective tax rate is around 21%...with over 40% of the income coming from capital gains.
Fact Finder wrote:Let us examine this tax thingy for a second.
2012 Tax Rates
Single Filing Status
[Tax Rate Schedule X, Internal Revenue Code section 1(c)]
•10% on taxable income from $0 to $8,700, plus
•15% on taxable income over $8,700 to $35,350,
•25% on taxable income over $35,350 to $85,650,
•28% on taxable income over $85,650 to $178,650,
•33% on taxable income over $178,650 to $388,350,
•35% on taxable income over $388,350.
Married Filing Jointly or Qualifying Widow(er) Filing Status
[Tax Rate Schedule Y-1, Internal Revenue Code section 1(a)]
•10% on taxable income from $0 to $17,400, plus
•15% on taxable income over $17,400 to $70,700,
•25% on taxable income over $70,700 to $142,700,
•28% on taxable income over $142,700 to $217,450
•33% on taxable income over $217,450 to $388,350,
•35% on taxable income over $388,350.
Married Filing Separately Filing Status
[Tax Rate Schedule Y-2, Internal Revenue Code section 1(d)]
•10% on taxable income from $0 to $8,700,
•15% on taxable income over $8,700 to $35,350,
•25% on taxable income over $35,350 to $71,350,
•28% on taxable income over $71,350 to $108,725,
•33% on taxable income over $108,725 to $194,175,
•35% on taxable income over $194,175.
Head of Household Filing Status
[Tax Rate Schedule Z, Internal Revenue Code section 1(b)]
•10% on taxable income from $0 to $12,400,
•15% on taxable income over $12,400 to $47,350,
•25% on taxable income over $47,350 to $122,300,
•28% on taxable income over $122,300 to $198,050,
•33% on taxable income over $198,050 to $388,350,
•35% on taxable income over $388,350.
How Marginal Tax Rates are Used
Individuals can use the tax rate schedules in a number of ways to help plan their finances. You can use these tax rates to figure out how much tax you will pay on extra income you earn. For a taxpayer in the 25% tax bracket, extra income will be taxed at that rate until the taxpayer reaches the next tax bracket.
Alternatively, you can use these tax rates to figure out how much tax you will save by increasing your deductions. A taxpayer in the 28% tax bracket, for example, will save 28 cents in federal tax for every dollar spent on a tax-deductible expense, such as mortgage interest or charity.
Be aware that marginal tax rates interact with other tax rates, including the alternative minimum tax, Social Security tax, and Medicare tax rates. In particular, the alternative minimum tax can push income into a higher tax rate or eliminate the tax savings of deductions.
Source: the official tax brackets for 2012 were published by the Internal Revenue Service in Revenue Procedure 2011-52 (21 pages, pdf).
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So right off the bat we see how the lower incomes get off without being taxed as much as the rich. When you figure in the standard deduction ($5,950) and exemption ($3,800), a single person earns the first $9,750 tax free to begin with. A married couple with one kid can earn the first $23,300 tax free, two kids and it's $27,100 in income, tax free. Then, these same people with kids, making $15 or $20K a year can get a refundable EITC $3000 or $4000 tax refund, all the while qualifying for an EBT card and other assistance programs.
It's safe to say that income taxes per se, don't really add up too much for those under the $30K mark if married w/kids or if you're single and make $10 grand or more. There are millions in these two categories.