The first of series of infographics I am designing to illustrate the actual 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 including payroll tax or any taxes on capital gains. Those taxes will be investigated later.)
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.
Popularity: 1% [?]
Found via NYTimes.com. Data is from Wages and Human Capital in the U.S. Financial Industry: 1909-2006. The graph shows the extra wages paid to people in the financial sector compared to other industries.
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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
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{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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