At worst, and the most likely outcome, is for a drop in after tax income.
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As a result, real after tax income per capita increased by more than 11%.
The top quintile accounts for 50.8 percent of before tax and 47.2 percent of after tax income.
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So if you had a corporation that was paying dividends equal to its after tax income, the combined rate would be less than 50%.
And remember, that a decline in U.S. after-tax income has to impact Europe and the emerging world, which in turn will negatively impact U.S. after-tax income.
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To say it simply: As demagogues throughout history have discovered, much to their chagrin, higher taxes reduce after tax income by an amount greater then the tax hike.
But while the progressive income tax has continued to reduce inequality, it has not kept the gap in after tax income from fairly steadily widening over the 1987 to 2009 period, the researchers found.
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These tax breaks increase after-tax income for nearly all of us.
Remember that this budget is based on your gross income, not after- tax income.
While the write-off would make no difference to a tax-exempt investor, a taxable investor in the 30% tax bracket would get an after-tax income stream comparable to another REIT yielding 7.14%, a substantial difference.
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Middle-income households would see their after-tax income fall by 7.9 percent under the VAT but just 5.5 percent from higher rates.
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Thus, in 2009, the lowest income groups had to spend 41% of their after-tax income on gasoline and food cutting off the ability have much discretionary income left over.
So next years higher taxes in essence means U.S. after-tax income will decline next year.
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The capital accumulation that is necessary for innovation and economic progress depends on savings from after-tax income.
Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income.
If we pay the 65 cents in after-tax income as dividends, our shareholders are taxed again at 15%.
Meanwhile, real-time data we look at is currently showing after-tax income growing a bit faster then in October.
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We then either consume our after-tax income, or we save and invest it.
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Therefore, my definition of a recession is when after-tax income drops year-over-year for at least three months or more.
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After-tax income, net of inflation, has barely been growing over the past five years and is likely to decline this year.
In Britain, where childcare is costly the average family with two earners spends 27% of after-tax income on it day camps are popular.
If we save and invest our after-tax income, a single dollar of income can be taxed as many as four different times.
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If we consume our after-tax income, the government largely leaves us alone.
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At the same time, consumer debt levels skyrocketed and the savings rate actually turned negative (U.S. households consumed more than their after-tax income).
As shown in a prior note to clients, the bottom two quintiles of U.S. citizens spend 30%-60% of their after-tax income on food and energy.
Such a change would trim their after-tax income by 3.8 percent.
With the Balanced Money Formula, I want less than 50% of my after-tax income to be spent on needs, such as housing and groceries and transportation.
An employee of the Congressional Research Service, Hungerford in 2011 published a paper that found that after-tax income inequality rose 11.2 percent between 1996 and 2006.
In other words, the Fed this year will in essence print half a trillion dollars that will not improve after-tax income nor help stock prices grow.
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Sales taxes, too, are important because they further reduce living standards by raising the price of goods and services that can be purchased with after-tax income.
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