|
Computation of Marginal 1999 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 $283,150 |
less than $283,150 but
greater than $158,550 |
less than $158,550 but
greater than $104,050 |
 |
|
 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 1999 marginal
rate on wage income: |
greater than $283,150 |
less than $283,150 but
greater than $158,550 |
less than $158,550 but
greater than $104,050 |
|
|
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 
