Since there has been a lot of talk about taxes

[countryroads89_rivals]

This is the current tax rate for the U.S.

Federal tax rates
For regular income tax purposes, a system of graduated marginal tax rates is applied to all taxable income, including capital gains. Through 2015, the marginal tax rates on a corporation's taxable income are as follows:

Taxable Income ($) Tax Rate[27]
0 to 50,000 15%
50,000 to 75,000 $7,500 + 25% Of the amount over 50,000
75,000 to 100,000 $13,750 + 34% Of the amount over 75,000
100,000 to 335,000 $22,250 + 39% Of the amount over 100,000
335,000 to 10,000,000 $113,900 + 34% Of the amount over 335,000
10,000,000 to 15,000,000 $3,400,000 + 35% Of the amount over 10,000,000
15,000,000 to 18,333,333 $5,150,000 + 38% Of the amount over 15,000,000
18,333,333 and up 35%
This rate structure produces a flat 34% tax rate on incomes from $335,000 to $10,000,000, gradually increasing to a flat rate of 35% on incomes above $18,333,333.

This is the historical tax rates for the U.S.

History of income tax rates adjusted for inflation (1913–2010)[71][72]
Number of First Bracket Top Bracket
Year Brackets Rate Rate Income Adj. 2016 Comment
1913 7 1% 7% $500,000 $12 million First permanent income tax
1917 21 2% 67% $2,000,000 $36.9 million World War I financing
1925 23 1.5% 25% $100,000 $1.35 million Post war reductions
1932 55 4% 63% $1,000,000 $17.3 million Depression era
1936 31 4% 79% $5,000,000 $85.3 million -
1941 32 10% 81% $5,000,000 $80.4 million World War II
1942 24 19% 88% $200,000 $2.9 million Revenue Act of 1942
1944 24 23% 94% $200,000 $2.69 million Individual Income Tax Act of 1944
1946 24 20% 91% $200,000 $2.43 million -
1964 26 16% 77% $400,000 $3.05 million Tax reduction during Vietnam war
1965 25 14% 70% $200,000 $1.5 million -
1981 16 14% 70% $215,400 $561 thousand Reagan era tax cuts
1982 14 12% 50% $85,600 $210 thousand Reagan era tax cuts
1987 5 11% 38.5% $90,000 $187 thousand Reagan era tax cuts
1988 2 15% 28% $29,750 $59.5 thousand Reagan era tax cuts
1991 3 15% 31% $82,150 $143 thousand Omnibus Budget Reconciliation Act of 1990
1993 5 15% 39.6% $250,000 $410 thousand Omnibus Budget Reconciliation Act of 1993
2003 6 10% 35% $311,950 $401 thousand Bush tax cuts
2011 6 10% 35% $379,150 $399 thousand -
2013 7 10% 39.6% $400,000 $406 thousand American Taxpayer Relief Act of 2012

 

[Airport]

This is the current tax rate for the U.S.

Federal tax rates
For regular income tax purposes, a system of graduated marginal tax rates is applied to all taxable income, including capital gains. Through 2015, the marginal tax rates on a corporation's taxable income are as follows:

Taxable Income ($) Tax Rate[27]
0 to 50,000 15%
50,000 to 75,000 $7,500 + 25% Of the amount over 50,000
75,000 to 100,000 $13,750 + 34% Of the amount over 75,000
100,000 to 335,000 $22,250 + 39% Of the amount over 100,000
335,000 to 10,000,000 $113,900 + 34% Of the amount over 335,000
10,000,000 to 15,000,000 $3,400,000 + 35% Of the amount over 10,000,000
15,000,000 to 18,333,333 $5,150,000 + 38% Of the amount over 15,000,000
18,333,333 and up 35%
This rate structure produces a flat 34% tax rate on incomes from $335,000 to $10,000,000, gradually increasing to a flat rate of 35% on incomes above $18,333,333.

This is the historical tax rates for the U.S.

History of income tax rates adjusted for inflation (1913–2010)[71][72]
Number of First Bracket Top Bracket
Year Brackets Rate Rate Income Adj. 2016 Comment
1913 7 1% 7% $500,000 $12 million First permanent income tax
1917 21 2% 67% $2,000,000 $36.9 million World War I financing
1925 23 1.5% 25% $100,000 $1.35 million Post war reductions
1932 55 4% 63% $1,000,000 $17.3 million Depression era
1936 31 4% 79% $5,000,000 $85.3 million -
1941 32 10% 81% $5,000,000 $80.4 million World War II
1942 24 19% 88% $200,000 $2.9 million Revenue Act of 1942
1944 24 23% 94% $200,000 $2.69 million Individual Income Tax Act of 1944
1946 24 20% 91% $200,000 $2.43 million -
1964 26 16% 77% $400,000 $3.05 million Tax reduction during Vietnam war
1965 25 14% 70% $200,000 $1.5 million -
1981 16 14% 70% $215,400 $561 thousand Reagan era tax cuts
1982 14 12% 50% $85,600 $210 thousand Reagan era tax cuts
1987 5 11% 38.5% $90,000 $187 thousand Reagan era tax cuts
1988 2 15% 28% $29,750 $59.5 thousand Reagan era tax cuts
1991 3 15% 31% $82,150 $143 thousand Omnibus Budget Reconciliation Act of 1990
1993 5 15% 39.6% $250,000 $410 thousand Omnibus Budget Reconciliation Act of 1993
2003 6 10% 35% $311,950 $401 thousand Bush tax cuts
2011 6 10% 35% $379,150 $399 thousand -
2013 7 10% 39.6% $400,000 $406 thousand American Taxpayer Relief Act of 2012

How does this fall out when you compute the money that is given back in the form of all the tax refund credits after you file your taxes?

 

[countryroads89_rivals]

How does this fall out when you compute the money that is given back in the form of all the tax refund credits after you file your taxes?

That was only done a couple of years during the Bush presidency. I apologize for the poor appearance of the second table. It looked good before I posted it and I did a screen capture to Paint but I don't believe you can post screen captures any more. I think they have to be links (anyone feel free to correct me if I'm wrong).

One of the things I wanted to point out was, the highest tax bracket in America has been as high as 70-something, 80-something and 90-something percent.

Another interesting fact is that prior to the great depression, the highest tax bracket was lowered from 67% to 25%.

 

[mule_eer]

That was only done a couple of years during the Bush presidency. I apologize for the poor appearance of the second table. It looked good before I posted it and I did a screen capture to Paint but I don't believe you can post screen captures any more. I think they have to be links (anyone feel free to correct me if I'm wrong).

One of the things I wanted to point out was, the highest tax bracket in America has been as high as 70-something, 80-something and 90-something percent.

Another interesting fact is that prior to the great depression, the highest tax bracket was lowered from 67% to 25%.

I think he may have been talking about the Earned Income Tax Credit - the situation where some folks get more as a refund than they paid in federal taxes. I'm not a fan of that either. If you don't make enough to end up having to pay federal tax once all of the deductions and whatnot, fine. You shouldn't get back more than you paid in.

 

[WVUCOOPER]

I think he may have been talking about the Earned Income Tax Credit - the situation where some folks get more as a refund than they paid in federal taxes. I'm not a fan of that either. If you don't make enough to end up having to pay federal tax once all of the deductions and whatnot, fine. You shouldn't get back more than you paid in.

Preach on Mule. Time to get you ready for 2020. You should see the lengths people will go to to hit that sweet spot of EITC. We've pretty much stopped preparing those returns.

 

[dave]

Preach on Mule. Time to get you ready for 2020. You should see the lengths people will go to to hit that sweet spot of EITC. We've pretty much stopped preparing those returns.

Is the limit on adjusted gross income or total earned? I just read about it. I thought you had to have a child to get it but apparently not.

I dont qualify. I am just curious.

 

[mule_eer]

Preach on Mule. Time to get you ready for 2020. You should see the lengths people will go to to hit that sweet spot of EITC. We've pretty much stopped preparing those returns.

It would take a lot more than 4 years to get me ready for a presidential run. Besides, forming a PAC is probably more lucrative and WAY easier.

 

[WVUCOOPER]

Is the limit on adjusted gross income or total earned? I just read about it. I thought you had to have a child to get it but apparently not.

I dont qualify. I am just curious.

To answer any tax/IRS related question would take hours, but TL;WT - It's based on EI and limited by AGI.

 

[dave]

To answer any tax/IRS related question would take hours, but TL;WT - It's based on EI and limited by AGI.

Thanks. Sorry for shop talk on the board. If you ever have a question about some boring engineering topic I owe you one.