Although this interactive calculator was released by the White House in April of this year, I had not seen it until recently. With all of the current politicking and campaigning, it was nice to see something that allowed me to drill down into some details of tax spending– normally presented in a pretty dry and boring way — with this tool that is easy to understand.
You can either enter your own 2011 tax payments for Social Security, Medicare, and income tax, or choose an income estimate. The income estimates include various income scenarios and family compositions–from $25,000 income for a single individual with no children to an $80,000 income for a family that was married with two children–and clearly specify the assumptions made about deductions and tax credits. The scenarios enable you to see how the proportion of taxes paid shifts according to total income and family structure, and the receipt provides a detailed breakdown of the disbursement of federal income taxes.
2011 Receipt for a married couple with one child earning $50,000 Continue reading