Half don't pay income tax

[AirDancer]

I hear you, Jason .... I have to make quarterly payments or else face problems at tax time. Same with State taxes ........... gotta do those estimated quarterlies .... not fun, but necessary

 

[jasoncran]

I hear you, Jason .... I have to make quarterly payments or else face problems at tax time. Same with State taxes ........... gotta do those estimated quarterlies .... not fun, but necessary

i dont pay state taxes, but if the liberals have their way that will change.

 

[AirDancer]

You're fortunate in that, at least for now, you don't have to pay state income taxes. Illinois has had a state income tax since 1969 .... have to pay for Chicago, you see. The base rate for individuals increased to 5% last year... businesses tax rates shot up to 8%, with incremental increases for the next few years. Many businesses closed up shop & moved to neighboring states who were more than happy to welcome them. Almost lost Caterpillar's headquarters, which is located in Peoria....apparently, a deal was cut, so Cat stayed put.

 

[jasoncran]

snowbirds AND TOURIST ER TERRORISTS, pay the main share of taxes,lol.

 

[Hammer]

Self-employment taxes are 12-13 % for SS & Medicare....

SS and Medicare are 15.3%. (Romney paid 13.9% for SS + Medicare + income.)

 

[AirDancer]

Typically, it is true that SS & Medicare withholding is 15.3%, Hammer. Thanks for pointing that out.

However, in the last couple of years, withholding on SS for the employee was cut in half to 'help' taxpayers. The employer still pays his/her full portion of SS for the employee. Late last year, when this 'tax cut' was set to expire at the end of the year, the furor which ensued made certain that an extension of this 'tax cut' would continue for another year. It's up for renewal again before the end of this year. We have to wait & see what happens.

Anyway, that's why I ranged SS & Medicare as 12-13 %.