Wealth inequality at all time high

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Tim
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Re: Wealth inequality at all time high

Post by Tim »

GeddyWrox wrote:
TimeForGuinness wrote:I've never known anyone who doesn't want to be a millionaire because they get taxed too much.
This.

I had a big long post typed up the other day about the ludicrous nature of the argument "I will just stop working if I bump up to the next tax bracket." It's the most idiotic thing I've ever heard. But I got sidetracked and didn't submit it. You said it much more succinctly than I was going to. LOL
When did someone say they "will just stop working"?

Now I said it my might behoove me to not work as much as my expenditures would decrease if I did not have to travel as much, but nobody said the would "stop working."
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haltz
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Re: Wealth inequality at all time high

Post by haltz »

I don't have a problem with the graduated tax. To me it's more like a moral obligation then legal obligation. I don't think anyone should be taxed over 50% of their income.
Or an economic obligation. All of these libertarian Freidman dorks somehow forget about marginal utility and how a dollar will stagnate in the hands of a billionaire and be spent immediately by someone who needs it.
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GeddyWrox
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Re: Wealth inequality at all time high

Post by GeddyWrox »

Tim wrote:
GeddyWrox wrote:
TimeForGuinness wrote:I've never known anyone who doesn't want to be a millionaire because they get taxed too much.
This.

I had a big long post typed up the other day about the ludicrous nature of the argument "I will just stop working if I bump up to the next tax bracket." It's the most idiotic thing I've ever heard. But I got sidetracked and didn't submit it. You said it much more succinctly than I was going to. LOL
When did someone say they "will just stop working"?

Now I said it my might behoove me to not work as much as my expenditures would decrease if I did not have to travel as much, but nobody said the would "stop working."
So your beef is with traveling, and not taxes? I'm confused.
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cardsfansince82
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Re: Wealth inequality at all time high

Post by cardsfansince82 »

TimeForGuinness wrote:The top income bracket is 39.6%...and you only pay 39.6% on money that's greater than ~$415k.

So if you make $415,001, the first $415,000 is taxed at a lower rate(s) and the $1 is taxed at 39.6%.
When you combine state and federal you can approach 50%, but only if it's all wage income and you make a ton of money (say 20 million) to where the lower brackets become negligible. Pro athletes in particular get crushed on taxes, especially in a state like California. They become wealthy overnight and don't have investment income or write offs you would normally have at that level. Joe CEO is paying nowhere near that much.
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Re: Wealth inequality at all time high

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TimeForGuinness wrote:
Diddy wrote:
cardsfansince82 wrote:Congress sets the tax rates at the various levels they think is fair to all and optimal for funding the govt while not burdening any one group excessively. It's not discrimination because everyone knows the situation upfront and isn't forced to make any given level of income. It's not all that different than various tax credits and other government services that are only available at certain income levels. People can lobby their reps to change the tax code, but they don't have any legal standing to force a change.
I don't have a problem with the graduated tax. To me it's more like a moral obligation then legal obligation. I don't think anyone should be taxed over 50% of their income.
The top income bracket is 39.6%...and you only pay 39.6% on money that's greater than ~$415k.

So if you make $415,001, the first $415,000 is taxed at a lower rate(s) and the $1 is taxed at 39.6%.
TM54 suggested several times 75+% tax brackets
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vinsanity
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Re: Wealth inequality at all time high

Post by vinsanity »

TimeForGuinness wrote:I've never known anyone who doesn't want to be a millionaire because they get taxed too much.
Plagiarist (Obligatory, I'm just kidding)

Buffet's been saying it for years; 11/26/2012 http://articles.latimes.com/2012/nov/26 ... a-20121126
"Suppose that an investor you admire and trust comes to you with an investment idea," Buffett wrote in an opinion article Monday in the New York Times. " 'This is a good one,' he says enthusiastically. 'I'm in it, and I think you should be, too.' "

"Would your reply possibly be this? 'Well, it all depends on what my tax rate will be on the gain you're saying we're going to make,' " Buffett continued. " 'If the taxes are too high, I would rather leave the money in my savings account, earning a quarter of 1%.' "

Buffet said such a response exists only in the imagination of Grover Norquist, president of the fiscally conservative Americans for Tax Reform, whose group asks lawmakers to sign a pledge never to increase taxes in exchange for its support.
cardsfansince82 wrote:When you combine state and federal you can approach 50%, but only if it's all wage income
These are statutory rates though. State income taxes, I believe, are tax deductible on the federal level. Same with things like property taxes on vehicles. Not to mention mortgage interest deductions, standard deductions, charitable donations, etc etc. Not to mention payroll taxes ~16% capped at $118k this year. Effective income tax rates in America are much lower than their statutory rates.

I'd be surprised if a single person earning $1 million a year is paying $500k a year in income tax.
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Re: Wealth inequality at all time high

Post by Diddy »

I don't think you can deduct property taxes on vehicles or anything else for that matter. Has anyone ever seen an estimate in what someone truly pays in taxes if income, property, sales, and whatever taxes I'm forgetting are all accounted for.
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Re: Wealth inequality at all time high

Post by sighyoung »

Diddy wrote:I don't think you can deduct property taxes on vehicles or anything else for that matter. Has anyone ever seen an estimate in what someone truly pays in taxes if income, property, sales, and whatever taxes I'm forgetting are all accounted for.
In Louisville, I pay an ad valorem tax on my car, which is deductible. I forget the details, but based on the specific way that I'm taxed for the vehicle, I can deduct a portion of that on income taxes.
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Re: Wealth inequality at all time high

Post by Arthur Dent »

Diddy wrote:I don't think you can deduct property taxes on vehicles or anything else for that matter. Has anyone ever seen an estimate in what someone truly pays in taxes if income, property, sales, and whatever taxes I'm forgetting are all accounted for.
http://www.ctj.org/pdf/taxday2015.pdf
State taxes are super regressive with the poor paying a much higher rate. Progressive federal taxes partially compensate, but in practice, the overall tax rate is pretty flat once you get to median income. Obviously, there's huge variation within income groups, but overall, the top average total is like 33%, way less than 50%.

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cardsfansince82
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Re: Wealth inequality at all time high

Post by cardsfansince82 »

Vins is right, I forgot you could itemize state and property. That might be partially offset by the AMT but I'm not really familiar with how that works.
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