Monday, July 28, 2014

The Gender of the Debt: SCOTUS Edition - Detailed Taxes Paid and Benefits Received

This is the detail from the summary post on "The Gender of the Debt: SCOTUS Edition".



Here's the Gross Earned Income, previous to any federal tax or benefits, to each SCOTUS, to his spouse or single partner, and combined with his spouse or single partners:


Ms. Peer SCOTUS/ Mr. Peer Working Husband Married
Mr. Patriarch SCOTUS/Mrs. SAHM Married
Ms. Peer SCOTUS/ Peer Partner Single
Mr. Patriarch SCOTUS/ Miss SAHM Single
Gross Income
Ms Peer.: $213,000
Mr Patriarch: $213,000
Ms Peer.: $213,000
Mr Patriarch: $213,000
Mr  Peer: $200,000
Mrs SAHM: $0
Mr Peer: $200,000
Mrs SAHM: $0
Combined: $413,000
Combined: $213,000
Combined: $413,000
Combined: $213,000












Here are the Social Security taxes (or payroll taxes) each would owe . . .. and the Social Security benefits each would collect.  Note that the Peers are paying 2x taxes for 2x benefits (whether they are married or not) and the Patriarch/SAHMs are paying 1x taxes for 1x benefits if they don't marry, but 2x benefits if they do:


Ms. Peer SCOTUS/ Mr. Peer Working Husband Married
Mr. Patriarch SCOTUS/Mrs. SAHM Married
Ms. Peer SCOTUS/ Peer Partner Single
Mr. Patriarch SCOTUS/ Miss SAHM Single
Social Security Tax (Employer and Employee sides)
Ms: $14,098
Mr: $14,098
Ms: $113,700 x .124 x 1 = $14,098
Mr: $113,700 x .124 = $14,098
Mr: $14,098
Mrs: $0
Mr: $113,700 x .124 x 1 = $14,098
Miss: $0
Combined: $28,196
Combined: $14,098
Combined: $28,196
Combined: $14,098















Social Security Benefits (projected)
Ms: 1x full retirement benefits
Mr: 1x full retirement benefits
Ms: 1x full retirement benefits
Mr: 1x full retirement benefits
Mr. 1x full retirement benefits
Ms.: 0.5x retirement benefit and 1x survivor benefit
Mr. 1x full retirement benefits
Miss: None
Combined: 2x survivor benefits
Combined: 1.5x full retirement benefits; 1x survivor benefit for Mrs.
Combined: 2x survivor benefits
Combined: 1x full retirement benefits













Here are the Medicare taxes (or payroll taxes) each would owe . . . . and the Medicare benefits each would receive.  Note that the Peers are paying 2x taxes for 2x benefits (whether they are married or not), while the Patriarch/SAHMs are paying 1x taxes for 1x benefits (whether they are married or not):




Ms. Peer SCOTUS/ Mr. Peer Working Husband Married
Mr. Patriarch SCOTUS/Mrs. SAHM Married
Ms. Peer SCOTUS/ Peer Partner Single
Mr. Patriarch SCOTUS/ Miss SAHM Single
Medicare Tax (pre 2013 imposed) (Employer and Employee sides)

Ms: $6177
Mr.: $6177
Ms: $6,177
Mr.: $6177
Mr: $5800
Mrs: None
Mr: $5800
Miss: $0
Combined: $11,977
Combined: $6177
Combined: $11,977
Combined: $6177
Medicare Surtax
$1467
None
None
None
None
None
None
None























Medicare Benefit
Ms Peer: 1x full Medicare benefit
Mr. Patriarch: 1x full Medicare benefit
Ms. Peer: 1x full Medicare benefit
Mr. Patriarch: 1x full Medicare benefit
Mr Peer: 1x full Medicare benefit
Mrs SAHM: 1x full Medicare benefit
Mr Peer: 1x full Medicare benefit
Miss SAHM: 1x full Medicare benefit
Combined: 2x full Med benefit
Combined: 2x full Med benefit
Combined: 2x full Med benefit
Combined: 2x full Med benefit










Here is the Net Income After Payroll Taxes (Social Security and Medicare), but setting aside Social Security and Medicare benefits for illustration.  This is the base on which income taxes will be measured in my simplified example:



Ms. Peer SCOTUS/ Mr. Peer Working Husband Married
Mr. Patriarch SCOTUS/Mrs. SAHM Married
Ms. Peer SCOTUS/ Peer Partner Single
Mr. Patriarch SCOTUS/ Miss SAHM Single
Income (after payroll taxes)
Ms Peer: $192,725
Mr. Patriarch: $192,725
Ms Peer: $192,725
Mr Patriarch: $192,725
Mr Peer: 180,102
Mrs SAHM: $0
Mr Peer: $180,102
Miss Peer: $0
Combined: $372,827
Combined: $192,725
Combined: $372,827
Combined: $192,725












Here are the Income Taxes owed.  The two "married" examples on the left, whether they file as "married filing jointly" or "married filing separately" are assessed tax as a merged earned income unit (some small or significant portion the SCOTUS' earned income is fictionally attributed to his/her spouse for the purpose of tax measurement) .  This is an economic fiction in the tax code that has some important ramifications that show up in the final measurement.



Ms. Peer SCOTUS/ Mr. Peer Working Husband Married
Mr. Patriarch SCOTUS/Mrs. SAHM Married
Ms. Peer SCOTUS/ Peer Partner Single
Mr. Patriarch SCOTUS/ Miss SAHM Single
Income Tax
$98,861
$41,429
Ms Peer: $47,750
Mr Patriarch: = $47,750
Mr Peer: $43,722
Miss SAHM: $0
Combined: $91,472
Combined: $47,750











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