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Fast Food Wages In California

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CASPERWAIT$

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Okay so presently at $20 an hour (with Newsom trying to raise it another 3.5%) it got me thinking.

So you work 40 hours a week. $800 earned before taxes. At 30% taken out of your check you’re left with $560. Multiply that by 4 weeks and you’re making $2240 a month take home. Now they say for rent you should pay 30% of your take home income. That gives you $672 a month for rent. Now the average rent in California is $1837 a month. Even with another fast food roommate, that’s still only $1344 towards rent. Essentially you need to work 50 hours a week at McDonalds and have a roommate to live.

That actually isn’t bad to be honest. It’s a reasonable way to live.

Maybe @stevek and I should go work at McDonalds and get a place together in California 🧐
 
40k in California:

income taxes in california
 
Just googled state and federal tax calculator and this came up:


California
income taxes in california 100k


Florida and Tennessee are the same (Washington, New Hampshire, etc)
income taxes in florida tennesse
 
Just googled state and federal tax calculator and this came up:


California
income taxes in california 100k


Florida and Tennessee are the same (Washington, New Hampshire, etc)
income taxes in florida tennesse

@Boner_18 , I don't really grasp marginal vs effective tax rate.

could you explain it to me like I'm 9 years old?

Prior to retiring, I planned for my monthly pension to be taxed federally at 26%

But this chart says my effective tax rate is 15.37%, (I don't pay FICA on my monthly pension).

So let's say the federal tax rate goes to 26% in 2025.........

My effective tax rate will be roughly 17.37%?

And why won't I pay the marginal rate of say, 26%
 
The Federal income tax is progressive. So your first dollar of income is not taxed at the same rate as your last dollar. Marginal is the tax rate that will be applied to your next dollar of income (the "bracket" you end in). The effective is the weighted average thats actually applied to your income. Here are the brackets:

2023 tax brackets



So taking 115k (just assume no deductions) it's taxed like this:

$11,000 * 10% = 1,100
$11,001 - 44,725 (total of 33,724) * 12% = 4,046
$44,726 - 95,375 (total of 51,099) * 22% = 11,241
$95,376 - 115,000 (total of 19,624) * 24% = 4,709

If you earn another dollar it's taxed at 24%, your marginal rate (think "top" rate). But because of the your earlier dollars were taxed at 10, 12, and 22 percents the rate you paid was not effectively 24%. You paid 1,100 + 4,046 + 11,241 + 4,709 = 21,096. 21,096/115,000 = 18.34%.

Hopefully that helps.