Saturday, April 14, 2007

Our Effective Income Tax Rates for the Year

Having just finished our taxes, way ahead of schedule, I spent a little extra time crunching some numbers to better see the actual impact of various income-based taxes on our lives.

Here's what I added together:
Local Tax Paid
+ State Tax Paid
+ Federal Tax Paid
+ SS Tax Paid
+ Medicare Tax Paid

I figure that as our total income-oriented tax burden. Obviously it doesn't take into account the taxes we pay in sales and use taxes, not to mention the staggering amount we pay in excise taxes on alcohol, but it still gives some idea of what we're paying to live in this great country and benefit from the services our federal and state governments provide.

Our effective tax rate, dividing the sum of the above taxes paid by our wages for the year: 13.9%.

Not too bad, I'd say. We are certainly getting our money's worth.