2013 Tax Incidence

Hey, it’s time for my now-annual blog post on tax incidence! Graphs below…

The payroll tax cut ended this year, and as a result, total tax burden is marginally up:

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Payroll taxes are back to normal, but federal and state income tax rates are down a bit:

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Cumulative view:

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State tax burden is down slightly, due to lower income and property tax rates:

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Last year I predicted that due to the expiration of the payroll tax cut, my total tax burden would have just about tied my all-time high. However, this didn’t happen, because our tax code is weird: marriage, the mortgage interest tax deduction, local property tax deduction, and the student loan interest deduction do good things for people who can take advantage of them. I think they are absurd, but until the rules are changed this is the tax code we have.

Given how wrong I was last year, I don’t think I’ll make any predictions for 2014.

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