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Old 04-27-2012, 02:43 AM
 
64,599 posts, read 66,129,695 times
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Quote:
Originally Posted by Kefir King View Post
Rest assured you are in a MUCH higher marginal tax bracket than Michael Blumberg. Much of his wealth is capital gains taxes at preposterously low rates. His employment INCOME taxes (Social Security) largely stops at $110,000 income...he pays that for shoes.

It is very likely that Bloomberg's marginal income is taxed at less than 20%. Perhaps MUCH less.
better brush up on the AMT tax before making that claim. as you forgot , we have two tax systems that run at the same time. large capital gains put you on the amt system . there is no marginal rates like the primary tax system. for the most part on the amt there are just two levels of tax 26% on the first 175k and 28% on the rest over it.

for 2012 you get a flat deduction of 33,750.00 for a single which phases out to zero eventually as you earn more and more making just a flat rate tax .

while capital gains get taxed at 15% every penny of earned income ,interest income and non qualified dividends get taxed at amt rates. they can be as high as a flat 26% on almost every dollar earned from dollar one and 28% above 175k with almost all deductions eliminated. except charity and home mortgage interest up to a point.

28 % in the amt sytem is a far cry from what it is in the regular system. that amt penalty carrys over into your state and local taxes too.

those that complain high income earners dont pay enough tax will find out just how much more they do pay as inflation bumps more and more upper middle class incomes into the amt system.



"Mr. Bloomberg, a billionaire who is usually reluctant to discuss his finances, said the bulk of his earnings stemmed from holdings in his media company, which he said was taxed as ordinary income at the highest city, state and federal rates, before he took deductions for charitable giving.

Last edited by mathjak107; 04-27-2012 at 03:18 AM..
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Old 04-27-2012, 07:34 AM
bg7
 
7,698 posts, read 7,633,154 times
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Quote:
Originally Posted by mathjak107 View Post
better brush up on the AMT tax before making that claim. as you forgot , we have two tax systems that run at the same time. large capital gains put you on the amt system . there is no marginal rates like the primary tax system. for the most part on the amt there are just two levels of tax 26% on the first 175k and 28% on the rest over it.

for 2012 you get a flat deduction of 33,750.00 for a single which phases out to zero eventually as you earn more and more making just a flat rate tax .

while capital gains get taxed at 15% every penny of earned income ,interest income and non qualified dividends get taxed at amt rates. they can be as high as a flat 26% on almost every dollar earned from dollar one and 28% above 175k with almost all deductions eliminated. except charity and home mortgage interest up to a point.

28 % in the amt sytem is a far cry from what it is in the regular system. that amt penalty carrys over into your state and local taxes too.

those that complain high income earners dont pay enough tax will find out just how much more they do pay as inflation bumps more and more upper middle class incomes into the amt system.



"Mr. Bloomberg, a billionaire who is usually reluctant to discuss his finances, said the bulk of his earnings stemmed from holdings in his media company, which he said was taxed as ordinary income at the highest city, state and federal rates, before he took deductions for charitable giving.
Yep - and you can't deduct your way out of AMT so easily - most of those deductions are gone - and it doesn't matter how many depdnents you have. Living in a high tax state like NY and having say three depdnents, you'll often get whacked by AMT.
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Old 04-27-2012, 07:36 AM
 
64,599 posts, read 66,129,695 times
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once you phase out the deductions married or single doesnt even matter either
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Old 04-27-2012, 11:19 PM
 
Location: Manhattan
20,143 posts, read 26,425,454 times
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If nearly all your income is taxed at the capital gains rate you have no NEED for deductions...ask Bill Gates.

It is only the silly well paid proles in the upper middle who have need for deductions that disappear with the alternate minimum tax..

In any case, the poor NYC slob making $90,000 who has the misfortune of working for himself gets an almost 16% employment tax tossed atop approximately 10% State and City added to his federal tax at nearly the highest rates. And it is onlly this poor jerkoff who suffers the highest marginal tax rate.

Bill Gates and Michael Bloomberg giggle over cocktails with their accountants...and they all pay a smaller marginal tax rate than the waiter bringing them their martinis.


One billionaire told the truth (Warren Buffett) when he said his secretary paid a higher marginal rate than he did. And he was not lying.
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Old 04-28-2012, 02:14 AM
 
64,599 posts, read 66,129,695 times
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again the rate your taxed on a marginal rate is very different from the tax in dollars. 26% marginal is a far cry in dollars paid from 26% amt on the same income. a marginal rate is only the tax paid on the last dollar earned. it could be one dollar at that rate. you could have all your income taxed at a mix of zero, 10 and 15% except 1 dollar and be in a 25% marginal tax rate .
.
while it makes a nice story the fact she is taxed at a marginal rate means nothing in comparison .

Last edited by mathjak107; 04-28-2012 at 02:49 AM..
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Old 04-28-2012, 05:01 AM
 
Location: Great Falls, VA
771 posts, read 1,154,353 times
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The tolls are indeed ridiculous, there are ways to avoid them of course, but overall driving into/out of NYC is a thing of nightmares. Seriously, $12 and $15 tolls?
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Old 04-28-2012, 05:14 AM
 
64,599 posts, read 66,129,695 times
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im surprised no one challenged the legal issues of our tolls.

its really an un-fair tax that goes into the general revenue buckets and only hits those that choose to commute from a certain area of our city to another.

if it was kept to support the bridge thats fine but its not.

someone can go from queens to riverhead and not pay an extra penny into the general tax bucket. but cross the 2 mile span of a bridge today and suddenly its your obligation to pay for other things in the city.
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