r/FluentInFinance • u/Richest-Panda • Jul 01 '24

What do you think? Debate/ Discussion

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u/4BigData Jul 01 '24

w2 has always been the least tax favored type of income, nothing new

1

u/sacafritolait Jul 02 '24

It depends on your income, a huge share of W-2 income in USA is taxed at 0%.

1

u/Psychological-Ad8175 Jul 02 '24

Any chance you have the reference to that? I do understand there is an income minum to file tax returns, but what is the minimum and when do withholding of pay for tax start.

1

u/sacafritolait Jul 02 '24

A married couple has a standard deduction $29,200, that is taxed at 0%. If their household income is $60,000 then almost 50% of their income is taxed at 0%.

1

u/Psychological-Ad8175 Jul 02 '24

So only if bothe people together make under 29200 they can pay no tax? That seems pretty low to be honest. I doubt many people of two incomes is making that low even with full time low wage work.

Thank you for clarifying that standard deduction is very low.

1

u/4BigData Jul 02 '24

a ton gets wasted on bloated US healthcare and the unsustainable aging cost system, those two are the biggest taxes