Re:U.S. adds just 266,000 jobs in April, far below expectations
by medvezhenok on Saturday May 08, 2021 @05:57PM
(#27091119)
Sure, but payroll taxes (~7.5% + 7.5% employer contribution) are a thing and that's another ~$5000 (or $10,000 if you include employer contribution) that the household has to pay.
Also as grandparent mentioned, you pay exactly the same amount of taxes on your first $65K as the person making $65K does.
https://www.taxpolicycenter.org/sites/default/files/styles/o...
$65K is an average household income, but there's no way that the average household is paying $10K in federal income tax, that's laugh-out-loud far of the mark.
Let's just say that's a couple married-filing-jointly.
In 2020, you'd take first of all a $24,800 basic deduction. Then you'd pay $4,429 in income tax on the $40,200 taxable income.
If you had two kids, you'd take two Child Tax Credits for $2,000 each and pay $429 in federal income tax.
An average household with two kids pays essentially no federal income tax in 2020.
Even in the absolute worst-case, a single filer pays no more than ~$7,400 on $65,000 of income.
In 2021, thanks to the increase in the Child Tax Credit ($3000 per child or more younger children), the bipartisan Joint Committee on Taxation estimates that the average household will pay no federal income tax at all on income under $75,000 per year.