Taxing Work
It's still March, and that means it's tax time. I did my taxes today, and since I had a salary increase and a much better bonus in 2013 compared to 2012, my taxable income increased a large amount. This greatly increased my income tax at both the federal and state level. Let's just say that I paid many thousands more in income tax, but I am only receiving $300 more of a federal income tax refund. And of course the social security withholding rate has increased from last year. My total net salary was still higher, but as a percentage of my income, the taxes increased significantly. See the chart below that illustrates this.
As one might suppose, my effective tax rate also increased. I graphed a little history of that.
And, to see if Obamacare has really decreased my insurance premiums, I also graphed the history of that. I didn't go all the way back to when I started working - only as far back as when we started being paid once a month since that was the easiest to calculate. As you can see in the graph below, my insurance premiums have continued to increase.
If Obamacare were going to truly decrease my premiums, there should be negative percentages, not positive percentages in this graph.
In summary: I like making more money, and the government likes it too! As a side note, if I don't have health insurance this year (2014), the tax software estimates that I would have to pay another $1000 in taxes for that. Good thing I do have health insurance!





