A middle class taxpayer pays 25% percent of their income in Federal Income Tax. Then there is the Federal Social Security and Medicare payroll tax of 13.3%. You pick up 5.65% while you’re employer pays 7.65%. Add them up and that’s 38.3% of middle class family incomes going to Uncle Sam. But we aren’t done, not by a long shot.
According to the Tax Foundation, the average state’s income tax rate on the middle class is 4.82%. Of course, some states have it and some don’t, but we’re taking an average here.
Now the total: 43.12% of middle class income to taxes.
Oh, and I almost forgot, unless congress makes a move, Federal Income taxes go to 28% for middle income folks next year as the Bush tax cuts expire.
We’re not talking about the rich here, those who make such “huge” amounts of money they can pay more taxes instead of getting a 5th Rolls Royce. No, we’re talking about middle class families, your average working American with kids and childcare bills and an underwater mortgage to pay.