Why are the Dems/Obama targeting the "Henry's" 200K/250K and up (wage, millionaires)
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Obama says these are millionaires and billionaires. Clearly 200/250K isn't poor, but it's not "wealthy, and it's not rich by any standards especially in high cost living areas like San Francisco or New York or Washington DC. Many of these families are 2 income as well. Most are in their 30s to early 50s with school age kids. If that's the case, why not start increasing taxes on those making more than 1 million? Those are the true millionaires.
Look, I make between 250-500K AGI. My "effective tax rate" is around 18% most years. But most of it is due to deferrals. Close to $70K in retirement a year. But it's just deferrals. Eventually I will have to pay taxes on that money. The the real adjusted tax rate after I start distributions of those deferrals makes that 18% easily jump to 23-30% depending how much I want to distribute when I retire.
And what happens when raising taxes on those making 200/250K isn't enough? What's Obama going to do than? It clearly won't raise enough revenue. And with the current Obama Care already 1 trillion dollars over budget and every politician (Republican and Democrats afraid to touch Defense spending). You touch defense spending, it crashes the stable Washington DC housing market. That's how scary it is. So many people in that area making money (like cushy 100K defense contracting jobs). I've lived in Washington DC half my life and I know what runs that town. It's a very educated area but defense spending is a major driving force. When do tax increases start tricking down to those making less than 200K/250K?
I've said this how many times. This is the income level of a successful small business. The not-rich-yets are pulling back. Instead of hiring a company to do renovations to their house they are holding back. They are not spending, not circulating their money through the economy. They have no choice because that money will instead go to the government.
aneftp...i'm exactly what you describe. hubby and i are in our mid 30s with two young children at home. dh and i will make about $275K combined this year, but we aren't rich. our agi after deductions, charitable contributions, etc will put us under the magic number, but we are close. yes, we are upper middle class and can afford most things we want, but i'm not swimming in cash. i don't consider myself wealthy and i'm certainly not a millionaire. but i guess it is what it is...if my tax rate goes up 3%, then it goes up 3%.
The line really needs to be drawn at around $100k if Obama is interesting in generating enough revenue to fund his Obamacare cause it seems like no one is truly interested in significant spending cuts.
Asking someone making $100k pay say $500-1000 extra helps along with someone making $250k-500k pay $2000-5000 extra. $500-1000 extra isn't going to hurt someone making $100k a year, or does it? Or is it all psychological?
To satisfy the proletariats insatiable need to make themselves feel better for their own horrid little lives.
Well actually its a political calculation and nothing more. Gets them more leverage in negotiations.
Yes that right they dont give a **** about the little man. Because if they did this wouldn't even be an issue they would go after reforming the tax code.
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