Or they are just approaching net worth 0 after years of working off student loan debt. There are plenty of people who would be in position to have a near infinite or even a negative effective wealth tax rate because so many college graduates (and college dropouts) in America are starting well below zero net worth
Depends on what you include in the percentage. 31% is definitely possible if you’re looking at the full effective tax rate, including federal, state, city (if applicable), social security, Medicare, etc.
In California, which has high state income tax, you’ll reach 30% total effective tax rate around $115-120k/year if filing single.
Also, definitely less likely, but an income around $600k/year (if filing single) will also get you a ~30% effective federal tax rate.
(numbers are rough estimates but should be close-ish)
That…shouldn’t be possible. You might have miscalculated
Could be if they don’t really have any net worth.
But that would also mean they’re just starting their career and are making a lot of money if their tax rate is so high
Or they are just approaching net worth 0 after years of working off student loan debt. There are plenty of people who would be in position to have a near infinite or even a negative effective wealth tax rate because so many college graduates (and college dropouts) in America are starting well below zero net worth
Yeah I’m hoping that person is young
Depends on what you include in the percentage. 31% is definitely possible if you’re looking at the full effective tax rate, including federal, state, city (if applicable), social security, Medicare, etc.
In California, which has high state income tax, you’ll reach 30% total effective tax rate around $115-120k/year if filing single.
Also, definitely less likely, but an income around $600k/year (if filing single) will also get you a ~30% effective federal tax rate.
(numbers are rough estimates but should be close-ish)
Also if the person is barely starting to work… which I hope is the case and not that this person doesn’t have a lot saved.