2006 Tax Comparisons

I don’t think people understand the current US tax rates, and the effective rates that people pay. Here are the tax statistics, computed to show what each slice of the population pays as a percentage of Adjusted Gross Income.

Are you middle class (percentile 50-75, $46.300)? You pay a rate that is 2.3 times the rate of the lowest 50%. Do you make $83,000? You pay an effective rate that is 30% higher than the rate for the middle class.

Those are effective tax rates. The amounts are interesting also.