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: So your beef is with traveling, and not taxes? I'm confused.
Sorry. I have done a poor job of articulating my beef.

I have a full time job. I also moonlight at a prison treating mentally ill inmates, two hours from my house. If I work enough shifts, my moonlighting income would put me in a higher tax bracket.

I must weigh the extra income that I make, which can be taxed at a higher rate, against the increased expenditures on gas, wear and tear on my car, decreased time at home to do house maintenance etc, and eventual childcare.

It may come to a point when my decreased take home income (because of an increased tax rate) plus increased expenditures due to my travel may equate to me deciding that it would make sense to not pick up those shifts.

It is my personal belief that everyone should be taxed the same rate, regardless of how much one makes.
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Re: Wealth inequality at all time high

Post by TimeForGuinness »

Tim wrote:
GeddyWrox wrote: So your beef is with traveling, and not taxes? I'm confused.
Sorry. I have done a poor job of articulating my beef.

I have a full time job. I also moonlight at a prison treating mentally ill inmates, two hours from my house. If I work enough shifts, my moonlighting income would put me in a higher tax bracket.

I must weigh the extra income that I make, which can be taxed at a higher rate, against the increased expenditures on gas, wear and tear on my car, decreased time at home to do house maintenance etc, and eventual childcare.

It may come to a point when my decreased take home income (because of an increased tax rate) plus increased expenditures due to my travel may equate to me deciding that it would make sense to not pick up those shifts.

It is my personal belief that everyone should be taxed the same rate, regardless of how much one makes.
I'm sure you've done the math, in certainly appears so, but you do realize that not all of your income is taxed at the higher rate?

The reason I'm posting is I know of a few people who were worried about their taxes when getting promoted because it pushed them into a higher tax bracket, they actually thought they would bring home less.

Given your circumstances, car & maintenance, I can see why you might need to balance that...but if you didn't cross into the next tax bracket, I would think you would be in a worse financial position.
Diddy
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Re: Wealth inequality at all time high

Post by Diddy »

We sold some property last year and if we made under 70k we didn't have to pay capital gains on so my wife took some time off her second job. Capitol gains was going to be far more then the extra she'd make.
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Re: Wealth inequality at all time high

Post by Diddy »

cardsfansince82 wrote: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.
My tax man has told me I can't. I can't imagine him being wrong, but he maybe saying that we take another deduction that's bigger and we can piggyback them.
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Tim
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Re: Wealth inequality at all time high

Post by Tim »

TimeForGuinness wrote:
Tim wrote:
GeddyWrox wrote: So your beef is with traveling, and not taxes? I'm confused.
Sorry. I have done a poor job of articulating my beef.

I have a full time job. I also moonlight at a prison treating mentally ill inmates, two hours from my house. If I work enough shifts, my moonlighting income would put me in a higher tax bracket.

I must weigh the extra income that I make, which can be taxed at a higher rate, against the increased expenditures on gas, wear and tear on my car, decreased time at home to do house maintenance etc, and eventual childcare.

It may come to a point when my decreased take home income (because of an increased tax rate) plus increased expenditures due to my travel may equate to me deciding that it would make sense to not pick up those shifts.

It is my personal belief that everyone should be taxed the same rate, regardless of how much one makes.
I'm sure you've done the math, in certainly appears so, but you do realize that not all of your income is taxed at the higher rate?
yes
TimeForGuinness
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Re: Wealth inequality at all time high

Post by TimeForGuinness »

Tim wrote:
TimeForGuinness wrote:
Tim wrote:
GeddyWrox wrote: So your beef is with traveling, and not taxes? I'm confused.
Sorry. I have done a poor job of articulating my beef.

I have a full time job. I also moonlight at a prison treating mentally ill inmates, two hours from my house. If I work enough shifts, my moonlighting income would put me in a higher tax bracket.

I must weigh the extra income that I make, which can be taxed at a higher rate, against the increased expenditures on gas, wear and tear on my car, decreased time at home to do house maintenance etc, and eventual childcare.

It may come to a point when my decreased take home income (because of an increased tax rate) plus increased expenditures due to my travel may equate to me deciding that it would make sense to not pick up those shifts.

It is my personal belief that everyone should be taxed the same rate, regardless of how much one makes.
I'm sure you've done the math, in certainly appears so, but you do realize that not all of your income is taxed at the higher rate?
yes
I figured as much, it's a bummer that a few hours here and there can make that big of an impact. My wife and I had to analyze whether her working vs staying home with the kids was "worth it". We figured out that given childcare costs, maintenance (home & car), and taxes, that we wouldn't be bringing home that much extra for someone else to raise our kiddos. It was tight for a few years, but it's starting to get easier...and it was totally worth it in our eyes.
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Re: Wealth inequality at all time high

Post by Arthur Dent »

The issue with the profitability of working a job with a two hour commute has almost nothing to do with progressive tax brackets. If I assume two hours drive is about 100 miles, that's 200 miles round trip. At $0.60/mile, your transportation cost is $120 per trip. The internet tells me prison counselors make around $17/hr, which means you'd need to work a 7 hour shift just to pay for the transportation cost. Whether your marginal tax rate is 25% is or 28% is a $3 difference in how much you lose per shift and is basically beside the point.

Anyway, providing mental health care to prisoners is truly honorable work. It's great that you have chosen to use your skills this way, and it really sucks the financial aspect of it is so lousy.
Last edited by Arthur Dent on January 26 17, 10:55 am, edited 1 time in total.
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Leroy
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Re: Wealth inequality at all time high

Post by Leroy »

You can itemize State Taxes (Income or Sales) as an itemized deduction.

However if you make enough (around 435,000 for a married couple) you can't itemize anyway, so it's not even an issue. Also at those higher brackets you lose credits like education, children and your exemptions are phased out as well.

You have to look at the effective tax rate, not just the brackets.
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Re: Wealth inequality at all time high

Post by TimeForGuinness »

Leroy wrote:You can itemize State Taxes (Income or Sales) as an itemized deduction.

However if you make enough (around 435,000 for a married couple) you can't itemize anyway, so it's not even an issue. Also at those higher brackets you lose credits like education, children and your exemptions are phased out as well.

You have to look at the effective tax rate, not just the brackets.
Happy when you drop some accounting knowledge into the mix...hope I didn't say anything too stupid.
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Re: Wealth inequality at all time high

Post by Leroy »

No more than usual. :P

I'm kidding of course. I know this stuff is hard, they intend it to be complicated so none of us really understand it.
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