Over taxableinc pay butnotover on excess ofthe

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Unformatted text preview: of the progressive system has prevailed 30 The Bush Tax Cuts The Bush Tax Cuts New health care law tax 3.8% investment income + 0.9% Medicare 31 Historical Highest U.S. Marginal Historical Highest U.S. Marginal Tax Rates 32 Single Rates: 2013 Single Rates: 2013 Assume $100,000 of Taxable Income (TI) 28% Tax Rates 25% 100,000 12,150 183,250 = 87,850 Tax Brackets 51,600 15% 27,325 10% 8,925 = 36,250 Up to 8,925 33 Single Rates: 2013 Single Rates: 2013 Assume $100,000 of Taxable Income (TI) Bracket Difference $183,250 $12,150 $87,850 $36,250 $8,925 Total Times Bracket Rate Tax Due 28% $3,402.00 $51,600 25% $12,900.00 $27,325 15% $4,098.75* $8,925 10% $892.50* $100,000 $21,293.25 * $892.50 + $4,098.75 = $4,991.25 for $36,250 of TI 34 Individual Single Rates: 2013 Individual Single Rates: 2013 Taxable Inc. Over Taxable Inc. Pay But Not Over % on Excess Of the amount over $0 $8,925 $0 10% $0 $8,925 $36,250 $892.50 15% $8,925 $36,250 $87,850 $4,991.25* 25% $36,250 $87,850 $183,250 $17,891.25 28% $87,850 $183,250 $398,350 $44,603.25 33% $183,250 $398,350 $400,000 $115,586.25 35% $398,350 $116,163.75 39.6% $400,000 $400,000 * See previous slide for how these numbers are calculated 35 Calcula...
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This document was uploaded on 02/12/2014.

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