Quote from Halvard Lange (Norwegian foreign minister from 1946 to 1965). WE DO NOT REGARD ENGLISHMEN AS FOREIGNERS. WE LOOK ON THEM ONLY AS RATHER MAD NORWEGIANS.
What I learned today:
My curiosity was aroused yesterday when I wrote about taxes. I googled "U.S. income tax brackets" and am trying to absorb what I ran off and have sitting in front of me. Here is what I'm looking at right now.
Federal Tax Brackets:
If your taxable income is between.......... your tax bracket is:
0 and $8,375.............................................10%
$8375 and $34,000.................................. 15%
$34,000 and $82,400...............................25%
$82,400 and $$171,850............................28%
$171,850 and $373,650 ............................33%
$373,650 and above................................. 35%
To take an example, suppose your taxable income (after deductions and exemptions) was exactly $100,000 in 2008 and your marital status was Married filing separately, then your tax would be calculated like this:
($8,025 minus 0) x .10: $802.50
($32,550 minus $8,025) x .15: $3,678.75
($65,725 minus $32,550 x .25: $8,293.75
($100,000 minus $65,725) x .28: $9,597.00
TOTAL ...........................$22,372.00
This puts you in the 28% tax bracket, since that's the highest rate applied to any of your income; but as a percentage of the whole $100,000, your tax is about 22.37%.
Tomorrow I'll show how the tax brackets changed from 1990 to to 2003.
Humor for today: If your best shots are the practice swing and the "gimme putt", you may wish to reconsider the game of golf.
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It's a progressive tax rate Dad, just like in Scandinavia, or most of Europe. I didn't know this either for the US, but of course it makes sense. So even when we say "we pay 68% in tax" in DK, we don't, totally. We pay 68% on our top income, meaning in DK we pay 68% on everything we earn over approx $60,000, which isn't much in this country. So, depending on how high your income actually is, you pay ca. 49-55% tax on average on your gross salary. Rarely more. But everything over that $60k gives .68 ore on the kroner to the govt. We get a lot for it, however, which is why no one really complains :-) But still a whopping amount in tax compared to the USA.
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