[mcguire]

"[24% is] lower than the income tax rate for a middle class American."

Do you have a source for that?

(I ask because I'm definitely upper middle class or possibly lower upper class and I'm only paying ~25% (and I'm in no way tax efficient). Everything I've seen puts the middle class income tax rate below 15%.)

[pc86]

Not the person you're replying to, but maybe these numbers will help:

- The median household income for 2013 was just under $52,000 [1] - For that same year, the marginal tax rate for a single person making that income was 25% [2] - If the household is married that drops to 15%.

Most Americans on HN are very likely upper-middle class in income, since that generally means $62,500+ in personal income and a six-figure household income [3]

I think these income stats are incredibly interesting. I never would have considered my wife and I to be upper-middle class either in wealth or income, but according to every set of figures I can find we're pretty solidly in the top 5-8% range nationally. It can be misleading what "middle," "upper middle," and "upper" really mean if you're strictly speaking about gross income.

[1] https://en.wikipedia.org/wiki/Household_income_in_the_United... [2] https://en.wikipedia.org/wiki/Income_tax_in_the_United_State... [3] https://en.wikipedia.org/wiki/Upper_middle_class#Income

[humanrebar]

There's a ~15% payroll tax (income tax by another name) for social security and medicare. The bulk of the median household's remaining income will be taxed at 15%. There's some fudging for deductions, I suppose, but that's also leaving out state and local income taxes.

The point was that a 24% VAT doesn't mean much to me when other major taxes are left unmentioned. It actually sounds like a great deal if income and property taxes are only nominal.

EDIT: You're likely neglecting to include both halves of your payroll taxes.