[CTartist&musician]

Connecticut to super-rich residents: Please don't leave us.

http://finance.yahoo.com/news/connec...191244214.html

[nep321]

It won't make any difference. The rich pay almost no taxes anyway.

[UKWildcat1981]

Super rich always find ways to avoid paying taxes, its the middle and upper middle class that always get hammered in taxes

[hartford_renter]

Originally Posted by UKWildcat1981

Super rich always find ways to avoid paying taxes, its the middle and upper middle class that always get hammered in taxes

Poor mother making 25K with 2 kids, gets a check from the government for $5,000 and therefore pays a negative income tax!

Middle class family with 2 kids making 50K a year pays <1% in federal taxes, about $400

Rich 1% earning 250K a year pays about $64,000 or 26%

Even if they earn all the money from capital gains the rate is 23%

[whome224]

But middle class in lower Fairfield, where a lot of posters live, is frankly 250K.

[ericvon.zipper]

Wow, AP Story " super rich residents asked not to move from the state" and how "tax revenue plunged 14 percent" What really caught my eye was the comments people wrote after the story. These weren't "super rich people"... more like working middle class/upper middle class people that just flat out throw in the towel on Ct and took there skills to another state. It amazing how state's like N.Y and CT push taxpayers out. I would think the new tolls (there coming) and higher gas tax will speed that along.

[NewJeffCT]

Originally Posted by hartford_renter

Poor mother making 25K with 2 kids, gets a check from the government for $5,000 and therefore pays a negative income tax!

Middle class family with 2 kids making 50K a year pays <1% in federal taxes, about $400

Rich 1% earning 250K a year pays about $64,000 or 26%

Even if they earn all the money from capital gains the rate is 23%

Middle Class family making $50,000, married, filing jointly with 2 kids.
Deductions total $11,850, making taxable income $38,150
Federal Income Tax: $4,815
Social Security & Medicare: $3,825
Total Federal Taxes: $8,640
Total Federal Tax percentage: 17.28% of $50,000

I believe a 1%er in Connecticut makes over $500,000/year according to a post here a few weeks back.
also, married, filing jointly with 2 kids.
Deductions: The same $11,850, plus another $20,000 for property taxes, $35,000 for mortgage interest (assuming they're several years into their mortgage) and another $30,000 for other deductions (IRA contributions, education funds for the kids, etc). Let's just round that to $100,000 total
Making taxable income $400,000
Federal Income Tax:$107,905
Social Security & Medicare: $14,504
Total Federal Taxes: $122,409
Federal Tax percentage: 24.48%

If you add in unemployment tax - which is only on the first $15,000 of income - then, your percentages are getting pretty close overall, with the $50,000 family now paying slightly higher percentage.

[hartford_renter]

Originally Posted by NewJeffCT

Middle Class family making $50,000, married, filing jointly with 2 kids.
Deductions total $11,850, making taxable income $38,150
Federal Income Tax: $4,815
Social Security & Medicare: $3,825
Total Federal Taxes: $8,640
Total Federal Tax percentage: 17.28% of $50,000

This is not correct at all

You can see for yourself here,

Married 2 Kids
$50,000 in income
tax liability = $366
1% federal income tax

Tax Calculator - Estimate Your Tax Liability | Calculators by CalcXML

http://www.taxact.com/tools/tax-calculator.asp

Married 2 kids 25,000 in income

you get something like $7000 back

[mlassoff]

Originally Posted by hartford_renter

Poor mother making 25K with 2 kids, gets a check from the government for $5,000 and therefore pays a negative income tax!

Middle class family with 2 kids making 50K a year pays <1% in federal taxes, about $400

Rich 1% earning 250K a year pays about $64,000 or 26%

Even if they earn all the money from capital gains the rate is 23%
!

You, of course, don't mention local taxes, sales taxes, etc. Who pays a higher % of their income in sales tax? How about local tax? Hint-- It's usually not the rich guy

And who is better off? The mom with two kids who now has 30K (according to your numbers-- which I doubt) or the person paying 64K on 250K?

Which person do you feel sorry for?

[NewJeffCT]

Originally Posted by hartford_renter

This is not correct at all

You can see for yourself here,

Married 2 Kids
$50,000 in income
tax liability = $366
1% federal income tax

Tax Calculator - Estimate Your Tax Liability | Calculators by CalcXML

Estimate Your Tax Refund Free ? TaxACT Tax Calculator

Married 2 kids 25,000 in income

you get something like $7000 back

I just used that same first link and came up with $2,732 of tax liability - that means money owed.
$50,000 combined income, 2 dependent children