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December 2006 Newsletter continued |
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EDITOR'S NOTE: Should you have questions with respect to the information contained in this newsletter or need help with your personal or business financial, tax and accounting activities, please call. |
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E-Mail Halliday@hallidaycpa.com |
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This newsletter offers factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects. No party assumes liability for any loss or damage resulting from reliance or use of this material. |
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The top 1% of filers paid 36.9% of all income taxes, yet they got just 19% of total adjusted gross income (AGI). An AGI of at least $328,000 was needed to be classified in the top 1%.
The top 5% paid 57% of total income tax and made 33% of total AGI. They all had incomes of $137,000 or more. And the top 10% of all filers, AGI’s of at least $99,100, bore 68% of the income tax burden while tallying a little more than 44% of total AGI.
The bottom 50% of filers paid just 3.3% of total income tax. |
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Who Pays The Tax Burden? |
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The 401 (k) maximum rises to $15,500, those born prior to 1958 can contribute an additional $5,000. The SIMPLE maximum increases to $10,500, $13,000 if born before 1958. The pay in ceiling for defined-contribution plans, Keoghs and profit sharing plans is $45,000 for 2007.
Social security benefit checks will be 3.3% larger in 2007. The earnings limits for beneficiaries will rise as well. Individuals between 62 and 65 and ten months can make $12,960. Individuals who will be age 65 and ten months in 2007 can earn $34,440 until they reach that age. There is no cap for individuals over age 65 and ten months. |
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Retirement plans and social security increases for 2007 |