A look at the current American Social Insurance Tax (ASI) and what you can expect when it’s repealed in 2019.
By the end of 2019, Americans earning $75,000 or more will have to pay a 3.4% income tax rate.
The current income tax rates for the top 2.8 million earners are 4.1% and 7.9%.
The average tax bill will go up when the tax bill goes to Congress and the President.
That means a $100,000 household with one employee will pay a $3,500 tax bill in 2019, for example.
That is more than twice the current income-tax rate for families earning less than $50,000 a year.
If you’re married filing jointly, you’ll pay a 2.2% income-and-gains tax rate on your earnings up to $4,000.
That rate drops to 1.8% for married filing separately.
And for those filing jointly or a qualifying head of household, the combined rate for both spouses will be 2.3% or less.
Under current law, taxpayers must pay income tax on any wages earned by a spouse.
The new law requires that wages be earned by someone else.
The IRS has said that a person earning $10,000 per year from a sole proprietorship will have an annual tax rate of about $2,600.
That’s less than the tax rate for married couples making $100 (or $1,200 for joint filers).
The tax rates on individuals also will go down.
Starting in 2019 under the old tax law, individuals will have the option of filing an income tax return for the year in which they make their federal income tax payment.
They can also pay a tax credit equal to half of the tax they owe.
For those who owe more than $10 million in taxes, the credit is worth up to 50% of the difference.
But the new tax law also gives a new, automatic credit of about 15% for certain taxpayers.
If you earn more than the statutory maximum tax rate, you will be hit with a penalty of 10% of your adjusted gross income (AGI) for every $1 you make above the threshold.
This penalty applies even if you pay no federal income taxes.
Taxpayers will also have to itemize their tax return.
The penalty for itemizing is reduced by about 25%.
The itemized rate for taxpayers who earn more will be 4.5% of AGI.
If you earn $250,000, the penalty will be 15% of $250.
You can itemize $500,000 and over.
For more information, read the Tax Guide for the American Community Survey.