American Capital Agency Corp. Message Board

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  • rimboomer rimboomer Nov 16, 2012 4:49 PM Flag

    Gary_kain

    Hey Onion,

    You have made a lot of very useful post on this board and I value your experience and insights greatly. However, I would not use you as my tax man.

    A person with a wife and kid who makes $250K per year would have a lot of deductions which would bring his taxable income significantly below $250K. But for the sake of example lets say his deductions come to $30K so his taxable income is $220K. The following are the tax rates and brackets.

    0 - 17,900 @ 10% = 1,790
    17,900 - 72,500 @ 15% = 8,190
    72,500 - 146,400 @ 25% = 18,475
    146,400 - 220,000 @ 28% = 20,608
    Total = 49,063

    A decent tax accountant could get that down even further. If this person had his own business and his total income was $250K there would be even more deduction and ways to shelter his income so that his taxes would be closer to $25K. I'm not an accountant, but I was a small business owner and job creator and the small business owner has significant tax benefits over the average employee. Just saying.

    RIM

 
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