Below is my answer to John Public's tax liability for the year 2006
Federal Tax Liability $314,422
FICA liability 5,840
Medicare 14, 500
Ohio state income tax 68,400
If he worked in the city of Cincinnati, you can tack on another $21,000 for a tax income tax liability of $424, 162.
These figures do not include sales tax paid, taxes paid by his employer, real estate taxes (even if paid indirectly through his rent, etc.
As a comparison, in 1998 using the same fact set, John's federal tax liability would have been $361,074 (a difference of $46,652) and the state $64, 738 (a difference of $3,642).
Someone please explain to me how paying over 42% of your income regardless of how much you earn is fair.
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