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A comment on Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent. Parent comment

Re:Netflix Made Record Profits in 2020, Paid a Tax Rate of L... by areyousure on Monday April 05, 2021 @07:33AM (#26697693)
For (single) self-employed people making between ~$85k and $137k, the marginal federal tax rate they face is a little under 40%, with 24% from your link, ~12% from Social security, and ~3% from Medicare. This excludes the effect of phaseouts of various deductions (eg, student loan interest), which can easily drive that higher while remaining within the context of federal taxation only.
[ Parent | on HN ]
Re:Netflix Made Record Profits in 2020, Paid a Tax Rate of L... by drdec on Monday April 05, 2021 @09:27AM (#26698614)
Everybody forgets about Social Security and Medicare. Writing out the federal marginal rates for the different income brackets with SS and Medicare included is very eye-opening.
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Re:Netflix Made Record Profits in 2020, Paid a Tax Rate of L... by bzbarsky on Monday April 05, 2021 @09:32AM (#26698695)
The other thing people forget are means-tested aid programs each of which is seemingly designed without considering interactions with the other ones. There are various places in the 0-$40k income range where people face >100% marginal rates due to the combination of actual taxes and benefit phaseouts...
[ Parent | on HN ]