Quote:
Originally Posted by dc_dux
I doubt your total federal/state/local taxes are anywhere near 40% . Most likely, you are confusing marginal tax rates with effective tax rates.
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I do understand the difference. I just looked up my 2009 1040. Dividing my total federal income tax, state income tax and local property tax by my W2 income is about 25%. Add in the 15.3% I and my employer pay for Social Security and Medicare and I'm just over 40%. Add in a few percent more to cover sales taxes, gas taxes, corporate taxes buried in the price of products, and I'm over 40%.