Despite fresh tax rate reductions belonging to the Jobs and Growth Tax Relief Reconciliation Act of 2003, the superior marginal tax bracket for many retirees is often a whopping 46.3%. Why? Because Social Security benefits are subject to income taxation. Those affected are Social Security recipients who purchase the good fortune (misfortune?) pertaining to being subject to both the 25% tax bracket as well as the 85% inclusion rate for Social Security benefits.
For 20 years, overall revenue per annum would require 658.2 billion more compared to 2010 revenues for 2,819.9 billion, which can an increase of one hundred thirty.4%. Using the same three examples the new tax may just be $4085 for that single, $1869 for the married, and $13,262 for me personally. Percentage of income would move to 8.2% for the single, 3.8% for the married, and 11.3% for me.
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