Tax Rates Reflect Total Well Being
Despite brand new tax rate reductions belonging to the Jobs and Growth Tax Relief Reconciliation Act of 2003, the top marginal tax bracket for many retirees is a whopping forty-six.3%. Why? Because Social Security benefits are subject to income tax bill. Those affected are Social Security recipients who have enough good fortune (misfortune?) always be subject to both the 25% tax bracket and the 85% inclusion rate for Social Security benefits.
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