[net.taxes] Please excuse my tax illiteracy!

fulford@altos.dec.com (Mike Fulford, MS: UCC, DTN: 544-1313) (09/29/86)

When the media speaks of the "tax rate", do they mean Fed and SS taxes or       just Fed? I can't figure out if I get a tax break or if I get broken by         taxes. I will be in the 28% bracket. If it's a Fed only rate, then I get 
a 10% increase. If it's Fed and SS, then I get a 2% decrease? What's the
story here? They're doing it to us again!

jld@ulysses.UUCP (Jeff David) (09/30/86)

> When the media speaks of the "tax rate", do they mean Fed and SS taxes or       just Fed? I can't figure out if I get a tax break or if I get broken by         taxes. I will be in the 28% bracket. If it's a Fed only rate, then I get 
> a 10% increase. If it's Fed and SS, then I get a 2% decrease? What's the
> story here? They're doing it to us again!

They mean Federal Income Tax rate only.  No SS.

ask@cbrma.UUCP (A.S.Kamlet) (10/01/86)

In article <5621@decwrl.DEC.COM> fulford@altos.dec.com (Mike Fulford, MS: UCC, DTN: 544-1313) writes:
>When the media speaks of the "tax rate", do they mean Fed and SS taxes or
>just Fed? I can't figure out if I get a tax break or if I get broken by
>taxes. I will be in the 28% bracket. If it's a Fed only rate, then I get 
>a 10% increase. If it's Fed and SS, then I get a 2% decrease? What's the
>story here? They're doing it to us again!

The 28& is the tax you pay on the last dollar of income on your income tax.
It is known as the marginal tax rate, and if your taxable income is above
your limit, you pay 28% on every dollar above the limit.  It does not
include SS tax.
-- 
Art Kamlet   AT&T Bell Laboratories  Columbus  {cbosgd | ihnp4}!cbrma!ask

gordon@cae780.UUCP (Brian Gordon) (10/07/86)

In article <5621@decwrl.DEC.COM> fulford@altos.dec.com (Mike Fulford, MS: UCC, DTN: 544-1313) writes:
>When the media speaks of the "tax rate", do they mean Fed and SS taxes or      >just Fed? I can't figure out if I get a tax break or if I get broken by        >taxes. I will be in the 28% bracket. If it's a Fed only rate, then I get 
>a 10% increase. If it's Fed and SS, then I get a 2% decrease? What's the
>story here? They're doing it to us again!

The rates reported are consistently Federal Income Tax rates.  The FICA tax
(Social Security) -- both rate and base -- is going up on 01Jan, as has been 
scheduled for years.  If you are a "computer professional", then, in all 
likelyhood, your takehome pay will decrease at the first of the new year,
and quite possibly with each additional "phase in" step.  You didn't expect 
a break, did you?

FROM:   Brian G. Gordon, CAE Systems Division of Tektronix, Inc.
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