by Catherine Mulbrandon on March 15, 2010
UPDATE 3/17/2010: I added more information about marginal tax rates by graphing the combined marginal tax rate line in the last graph. Also clarified that the employer-side of the payroll taxes are not included
The first of series of infographics I am designing to illustrate the average federal tax rate applied to different salaries. I want to show how the marginal income tax rates + social security and medicare taxes combine together for a single taxpayer up to $400,000. (This graphic does not include payroll taxes paid by the employer.)
A little background about this data. If you take a look at your W-2 form you can see that there are 3 different taxes applied to salaries and wages:
The income tax graph is created from the 2009 tax schedule for a single taxpayer:
which you can find from the IRS Tax Tables here while the information about the social security and medicare tax can be found here.
by Catherine Mulbrandon on March 25, 2009
by Catherine Mulbrandon on January 13, 2008
Measuring Worth
US/UK econ & population series from 1700s. UK Gold, Earnings and Retail prices back to 1260s.
This site lets you graph data and calculate Annualized Growth Rates for various time periods
by Catherine Mulbrandon on November 4, 2007
{Click on the image to take a closer look}
I found a Federal Reserve article that analyzed the change in Average Hourly Earnings for production and nonsupervisory workers. After adjusting for inflation using the Personal consumption expenditures (PCE) {instead of the Consumer Price Index-Urban Wage Earners and Clerical Workers (CPI-W)} and including an estimate for worker’s benefits, the author concluded that workers’ hourly earnings (wages plus benefits) actually increased by 16% over 30 years (1975-2005) rather than decreased. Here, I graphed the full history, 1964-2006, but used the approach laid out in the article to show the effect of inflation and benefits. BTW, if you earned $16.76 an hour in 2006 that gave you an annual income of $33,520 (assuming you worked full-time).
See also:
Average Income in the United States
Total Income of Top, Middle, & Bottom
[tags]income distribution, income inequality, Federal Reserve, wages, middle class[/tags]
Addendum: This was past on to me from a reader who found it on Marginal Revolution
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