Last night, I received a Tweet (this blog has a Twitter account @lmelephantblog) from someone who did not like our conservative viewpoint. I had tweeted that Mitt Romney won the Nevada Caucuses and used the hashtag @MittRomney in my tweet. He obviously monitored Romney's twitter and decided to message me. His information is blacked out, but the message is clear:
I turned to Microsoft Excel (you know I just love Excel tables) to help with the analysis. First, allow me to establish some givens:
- I will use the most conservative estimate I can to make sure (though unrealistic) each taxpayer pays the maximum amount. This means:
- No deductions
- No write-offs
- Neither taxpayer will receive a refund of any kind
- Each taxpayer will pay the pre-payroll tax holiday tax rate of 7.65% total (6.2% for SS and 1.45% for Medicaid taxes)
The math is quite simple. Please see the results:
So what does all this mean? Well, I have concluded:
- Someone that makes $57,000 of total income pays a final effective tax rate of 25.85%
- It would take an income of $83,250 to pay a final effective tax rate of 28.00%.
- Again, these tax rates are WITHOUT deductions. Normally, people making between $57K and $83K would have children, houses, and other write-offs and deductions, making their effective tax rates even lower. I make $53k (now current salary) and my tax rate was less than 14%. See my tax information at this post: http://loudmouthelephant.blogspot.com/2012/01/part-2-what-do-mitt-romneys-tax-returns.html
- The twitter commenter was $26,250 or 46% too high.
What do YOU think? Is this analysis off? Is this the truth? All comments are appreciated.