|
Computation of Marginal 2000 Regular Tax Brackets
for Employees (Married Filing Jointly)
| 1. Assumes
state income tax rate is 0% |
| |
Taxable Income |
Taxable Income |
Taxable Income |
| Maximum possible 1999 marginal
rate on wage income: |
greater than
$288,350 |
less than
$288,350 but
greater than $161,450 |
less than
$161,450 but
greater than $105,950 |
 |
|
 Federal tax bracket |
|
39.60% |
36.00% |
31.00% |
|
Effect of 3% phaseout of itemized deductions |
|
1.19% |
1.08% |
0.93% |
|
State income tax bracket |
|
0.00% |
0.00% |
0.00% |
|
Subtract federal benefit of state tax |
|
0.00% |
0.00% |
0.00% |
|
Hospital insurance tax |
|
1.45% |
1.45% |
1.45% |
|
| Total maximum marginal rate --
wages |
42.24% |
38.53% |
33.38% |
| Total maximum marginal rate --
non-wage income |
40.79% |
37.08% |
31.93% |
| 2. Assumes
state income tax rate is 5% |
| |
Taxable
Income |
Taxable
Income |
Taxable
Income |
| Maximum possible
2000 marginal
rate on wage income: |
greater than
$288,350 |
less than
$288,350 but
greater than $161,450 |
less than
$161,450 but
greater than $105,950 |
|
|
Federal tax bracket |
|
39.60% |
36.00% |
31.00% |
|
Effect of 3% phaseout of itemized deductions |
|
1.19% |
1.08% |
0.93% |
|
Subtract federal benefit of state tax |
|
5.00% |
5.00% |
5.00% |
|
Subtract federal benefit of state tax |
|
-1.98% |
-1.80% |
-1.55% |
|
Hospital insurance tax |
|
1.45% |
1.45% |
1.45% |
|
| Total maximum marginal rate --
wages |
45.26% |
41.73% |
36.83% |
| Total maximum marginal rate --
non-wage income |
43.81% |
40.28% |
35.38% |
|
Tax Guide 
