Despite brand new tax rate reductions from the Jobs and Growth Tax Relief Reconciliation Act of 2003, tips for sites marginal tax bracket for many retirees is a whopping 46.3%. Why? Because Social Security benefits are subject to income tax. Those affected are Social Security recipients who include the good fortune (misfortune?) to be subject to both the 25% taxes bracket and also the 85% inclusion rate for Social Security benefits.
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These figures seem to fit the argument that countries with high tax rates take good their habitants. Israel, however, is suffering from a tax rate that peaks at 47%, very nearly equal to the next of Belgium and Austria, yet few would contend that this in precisely the same class for civil beginning.
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