The Moment of Dream Come True

Median Earnings and Tax Payments by Level of Education, 2003

According to Sandy Baum and Kathleen Payea, one’s level of education determines one’s pay and taxes.  Respondents, full-time year-round workers age 25 and older, were asked to provide their 2003 total earnings and tax payments.  The research showed that respondents with professional degrees obtained the highest salary US$95,700 and paid the highest taxes compared to those of other educational levels.  The earnings of those with Doctorate degrees reached US$79,400 per year.  Drastically lower-around US$20,000-than those with Doctorate degrees, people with Master’s degrees earned the third highest salary US$50,500.  The fourth highest salary, US$49,900, was earned by respondents with Bachelor’s degrees.  With regard to those with Associate degrees, college degrees, and high school diplomas, their salaries were relatively close; they were US$37,000, US$35,700 and US$30,800 respectively.  The lowest salary was US$21,600, earned by those with less than high school diplomas; meanwhile, they paid the lowest taxes accordingly.