Total tax rate is 6.2% + 13.39% + 4.9% = 24.49% (not including San Diego local tax (about 1%), not including property tax (about 1%) and health insurance. It also does not account for AGI adjustment for deductions – largest is mortgage interest deduction (which may drop him a state bracket but not a fed tax bracket, you can only deduct the interest not the principal) Nor does this take into account sales tax on virtually everything that Joe Legal buys (varying from location to location, but generally around 8%).
In reality, Jose Illegal will get $6/hour under the table working full time (if he does not want to work for that kind of money – there are lots out there who do).
During the real estate bubble – the illegals were getting more than $15/hour. In 1976, apprentice carpenters were making $15/hour, and journeymen were making a lot more.[/quote]
See my numbers above. I computed the tax based on the 2009 rates.
Joe Legal wouldn’t pay the employers share of SS (which is actually 7.65% not 6.2%).
There is no local San Diego income tax. (You may be confused by SDI, which is state disability insurance. Currently 1.1%)
You didn’t take into consideration the standard deduction or personal exemptions or child tax credit on the federal, which would have greatly reduced their taxes to just over 2%. And the standard deduction and expemption credits on the state which would have eliminated any state income tax.
Sales taxes would have been paid equally both both Joes.
If they were renters or homeowners, they would have effectivly paid similar property taxes either through their landlord or directly.
