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Quote by: ibm  Where you get that 40%? SS tax is about 7.5% for emloyee's portion. You're supposed to benefit from it (at least in theory) when you retire. That's why I didn't include it in my first post. And my state doesn't have state income tax.
But you're right. For all the taxes we pay, for most of us we don't even get healthcare out of it (unlike our northern neighbor). |
Based on an income of 200,000 (the example used for Canada), Federal, SS and whatever else is automatic in the paycheck would come to about 40%. It came to about 30% when I made 50-60K. TX doesn't have income tax either, so it would be more, I think, for states that do.