Last Updated:November 26 @ 11:36 am

Just how much are YOU paying in taxes?


It is absolutely incredible how much of a worker's hard-earned money is taken from his or her paycheck and turned over to state and federal governments. In a new study by The Heritage Foundation, it is shown that nearly half of the paycheck of a middle class worker is paid out in taxes. Imagine what that money could be used for in the worker's family?

A middle-class taxpayer's income is subject to a 25 percent federal income tax. Then there is the federal Social Security and Medicare payroll tax of 13.3 percent in 2012--5.65 percent of that is removed from the employee's paycheck, and the remaining 7.65 percent is paid by the employer. (In reality, the employee pays the entire 13.3 percent, because the employer's portion of the tax does not affect the cost of labor: The employer would pay the employee 7.65 percent more if there were no employer's portion of the payroll tax.)

So the 25 percent federal income tax plus 13.3 Social Security and Medicare payroll taxes equals 38.3 percent going to federal taxes in 2012.

And then there are state taxes. According to the Tax Foundation, the average state's income tax rate for the middle-class taxpayer is 4.82 percent, which brings the total to 43.12 percent in federal and state taxes. And it's going higher, thanks to the nearly $500 billion in tax increases for 2013 that some have called Taxmageddon. In January of next year, the federal income tax rate for middle-class taxpayers is scheduled to rise from 25 percent to 28 percent, and the payroll tax is scheduled to rise from 13.3 percent to 15.3 percent. This drives the marginal tax rate based on the aforementioned three taxes to 48.12 percent.

Read the full story at The Heritage Foundation

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  1. Ron BComment by Ron
    August 20, 2012 @ 9:55 am

    Only 50%!

    Let’s See

    Federal Income Taxes, Social Security, Medicare, State and Local Income Taxes, Sales Tax Property Tax.
    Did I get all of the different taxes we our paying?

    How much do we pay in taxes for every gallon of gas that we purchase?
    Only about 50%, I really think that it is higher maybe closer to 60%
    Hope and Change
    How about “No Hope for the Future” and “Higher Taxes for a Change”!

    The Government is out of control!

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    • bgintnComment by bgintn
      August 20, 2012 @ 1:37 pm

      Ron Sir,

      This might be funny if it weren’t so darned true.

      Tax his land,
      Tax his bed,
      Tax the table,
      At which he’s fed.

      Tax his tractor,
      Tax his mule,
      Teach him taxes
      Are the rule.

      Tax his work,
      Tax his pay,
      He works for peanuts

      Tax his cow,
      Tax his goat,
      Tax his pants,
      Tax his coat.

      Tax his ties,
      Tax his shirt,
      Tax his work,
      Tax his dirt.

      Tax his tobacco,
      Tax his drink,
      Tax him if he
      Tries to think..

      Tax his cigars,
      Tax his beers,
      If he cries
      Tax his tears.

      Tax all he has
      Then let him know
      That you won’t be done
      Till he has no dough.

      When he screams and hollers;
      Then tax him some more,
      Tax him till
      He’s good and sore.
      Then tax his coffin,
      Tax his grave,
      Tax the sod in
      Which he’s laid…

      Put these words
      Upon his tomb,
      Taxes drove me
      to my doom…’

      When he’s gone,
      Do not relax,
      Its time to apply

      The inheritance tax..
      Accounts Receivable Tax
      Building Permit Tax
      CDL license Tax
      Cigarette Tax
      Corporate Income Tax
      Dog License Tax
      Excise Taxes
      Federal Income Tax
      Federal Unemployment Tax (FUTA)
      Fishing License Tax
      Food License Tax
      Fuel Permit Tax
      Gasoline Tax (currently 44.75 cents per gallon)
      Gross Receipts Tax
      Hunting License Tax
      Inheritance Tax
      Inventory Tax
      IRS Interest Charges IRS Penalties (tax on top of tax)
      Liquor Tax
      Luxury Taxes
      Marriage License Tax
      Medicare Tax
      Personal Property Tax
      Property Tax
      Real Estate Tax
      Service Charge Tax
      Social Security Tax
      Road Usage Tax
      Recreational Vehicle Tax
      Sales Tax
      School Tax
      State Income Tax
      State Unemployment Tax (SUTA)
      Telephone Federal Excise Tax
      Telephone Federal Universal Service FeeTax
      Telephone Federal, State and Local Surcharge Taxes
      Telephone Minimum Usage Surcharge Tax
      Telephone Recurring and Nonrecurring Charges Tax
      Telephone State and Local Tax
      Telephone Usage Charge Tax
      Utility Taxes
      Vehicle License Registration Tax
      Vehicle Sales Tax
      Watercraft Registration Tax
      Well Permit Tax
      Workers Compensation Tax

      STILL THINK THIS IS FUNNY? Not one of these taxes existed 100 years ago, & our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.

      What in the hell happened? Can you spell ‘politicians?’

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    • cynicalpeteComment by cynicalpete
      August 20, 2012 @ 4:42 pm

      If a working man works long hard hours, pays the taxes, lives a frugal life, when he retires he and his family will live in dire poverty.

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  2. Pat SantavenereComment by Pat Santavenere
    August 20, 2012 @ 10:44 am

    Ron is absolutely right. The article doesn’t even mention sales taxes and property taxes, taxes on gasoline, utilities, etc. etc. 60% is probably a conservative estimate of the taxes we pay. Imagine what we could do without an “all-knowing, all-providing” government taking most of what we make. We could MUCH more efficiently provide for ourselves with government out of the way doing ONLY what it is constitutionally allowed to do. Imagine, a small, unobtrusive government out of the way of the economy, allowing for massive economic prosperity and jobs creation like we have never seen before! We can dream….

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    • vevaComment by veva
      August 20, 2012 @ 5:04 pm

      This is why a FairTax, consumer tax on only what new goods you buy, is a better idea. With a prebate for basic needs, we all will be ahead. You start with all of your paycheck, and you decide where to spend it.

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  3. georgeaiComment by georgeai
    August 20, 2012 @ 11:04 am

    I pay so much tackes it hurts my way of life. The govrnment should be ashamed of how much it takes. How can people live?
    Where in the heck does it say in the constution the goverment can task me so much?
    We need a constution rebellion and take back our country.

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  4. CharlieComment by vietnamvet
    August 20, 2012 @ 11:43 am

    I pay Uncle Sam what I owe willingly … not gladly, but willingly.
    It bothers me that 47% of wage earners do NOT pay federal income tax.

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    • nickster99Comment by nickster99
      August 20, 2012 @ 12:40 pm

      And we have to pay higher Property taxes because most of those 47% are renters or section 8 whores and do not pay any property taxes! And next comes insurance costs are higher because of these people auto and medical insurance The law in Illinois says you must have auto insurance to drive or own a car. They pay for one month to get their proof of insurance card then they just stop paying and get cancelled. They do not pay their fare share for anything it is sickening.

      Out with obummer in November!

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  5. mvotano58Comment by mvotano58
    August 20, 2012 @ 11:51 am

    We really have no one to blame but ourselves. We let this happen through apathy…. “The problem doesn’t affect me directly so why should I care.” I am a Quality Assurance consultant (self-employed) and I understand all-too-well the interaction of the processes of government and the government’s interaction with the people and vice-versa. I understand that one doesn’t make more rules to enforce the old ones…you revise and change the procedures and you get rid of the ones that add “no value” to anyone or anything or that are adding too much value to useless, outdated ideologies and standards. By doing these things the way they are done, you muddy the waters and all that does is kill everything that lives there.

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  6. noveldogComment by noveldog
    August 20, 2012 @ 11:51 am

    How much do I pay in taxes? TOO MUCH!

    We need to change to a user only tax. You only pay taxes if you buy something.

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  7. capthalComment by capthal
    August 20, 2012 @ 12:48 pm

    noveldog, That is a slippery slope. Do you see any taxes going away with user only tax?? I am visiting here in Canada. The officials here have given the “subjects” income tax and a user tax. It was to be a small user tax at first, like a lot of state income taxes. Now it is 12% and climbing.
    Don’t forget that promises from the politicians are worthless like Obummer.
    Maybe a Constitution amendment that says Congress can’t make laws that don’t affect themselves. Like Obummercare.

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  8. JDZComment by JDZ
    August 20, 2012 @ 1:17 pm

    The property tax, the various sales taxes, the personal property tax, the capital gains tax, the city taxes, the government fees on everything, the estate tax, all add to income taxes, social security and Medicare (which has a sir tax on higher income earnings) taxes which means that we all work for the government for a small percentage of our earned income.

    The only people who really make out on this are the super wealthy who make so much that it doesn’t matter, and guess who…those that work for GOVERNMENT…especially politicians and those that belong to public service unions. Oh..I forgot about those on the public dole like the 100 million on welfare and various other “social justice” programs.

    This concept of “fair share” that Obama keeps harping on is such a crock that it makes me sick to even think about it. Romney and Ryan should confront Obama/Biden and have them define exactly what they consider “fair share” and have them put it in context. I bet they will continue to avoid putting any specifics on the table because as long as they keep it an amorphous concept they can continue to use it for political purposes.

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    • mvotano58Comment by mvotano58
      August 20, 2012 @ 1:28 pm

      That is the question I keep asking…what is “fair share”. I used to volunteer to help fund the high school collar guard my daughter was in. Because of various “no child left behind” laws anyone who wanted to be in the marching band or color guard could be even if they weren’t able to afford the instruments or uniforms. About 15 of us out of over 300 parents busted our tails at the Woodlands Pavilion (a concert venue north of Houston) to ensure that everyone in either program got to remain in it. The ones who did volunteer were always told it was to earn their “fair share”….a term that no one could actually define. We worked sometimes 12 hours a day in the heat, sun, cold and rain to provide our “fair share”. You could write a check instead of volunteering but no one could ever tell you what that was….ever.

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