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If you move to an area with a higher cost of living and get a increase in salary proportional to the increase in COL, but you move into a higher tax bracket, you have less purchasing power than if you had just stayed home. Is there a name for this? Is this a good argument to support a flat tax? Most people think that a flat tax is only going to benefit the rich, but is this an example of how it would actually benefit lower and middle classes?
If you move to an area with a higher cost of living
and get a increase in salary proportional to the increase in COL,
but you move into a higher tax bracket,
you have less purchasing power than if you had just stayed home.
Is there a name for this?
"rode hard and put up wet"
Quote:
Is this a good argument to support a flat tax?
It's as good as any I suppose...
Quote:
Most people think that a flat tax is only going to benefit the rich...
If that's the concern... then focus on the threshold before tax applies at all
Of course you'll still also have to deal with what 50 states want/need to do.
So, move back to the place with the lower cost of living.
Want to be a tax protestor? Stop doing things that are taxed. Until there is a flat tax, you have that option.
The great thing about the flat-taxers, is they are also opposed to a minimum wage. They want people to work for $6 an hour AND pay 30% of that back in taxes.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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It doesn't quite work that way. With a higher cost of living, you will have higher mortgage interest and sales tax deductions, and if you are moving to WA or another without state income tax you will get an additional raise of as much as 10%. You can also avoid higher taxes with the raise by putting more into a tax deferred retirement plan or health savings account.
Is there a name for this? Is this a good argument to support a flat tax? Most people think that a flat tax is only going to benefit the rich, but is this an example of how it would actually benefit lower and middle classes?
I don't think its an argument for flat tax. Areas with higher COL usually provide something for that cost; whether its culture, safety or infrastructure. A flat tax rate would put a burden on the poor, whereas a progressive tax rate forces tax payers to pay different rates as their income passes through the tax brackets, allowing them to pay the highest rates only on income between their upper limits.
I don't think its an argument for flat tax. Areas with higher COL usually provide something for that cost; whether its culture, safety or infrastructure. A flat tax rate would put a burden on the poor, whereas a progressive tax rate forces tax payers to pay different rates as their income passes through the tax brackets, allowing them to pay the highest rates only on income between their upper limits.
The primary argument for a flat tax is simply drastic simplification, which eliminates the deductions, loopholes, etc. that complicate the tax code.
All flat tax programs that have seriously been discussed included a "no tax" income level where people earning less than X don't pay income tax.
On the topic of state taxes - I think it is just ridiculous that our federal taxes allow for deduction of state taxes. Why should people living in a high tax state pay less in federal taxes? The feds should have no role in making CA, NJ, CT less expensive to live in through the tax code.
Well, that plus the whole notion of actual fairness, yes.
apparently you aren't familiar with "tongue in cheek"
The inverse of "It's as good as any..." is "It's as bad as any..."
As with all such notions the devil is the details.
Quote:
Originally Posted by hoffdano
The primary argument for a flat tax is simply drastic simplification...
All flat tax programs that have seriously been discussed
included a "no tax" income level where people earning less than X don't pay income tax.
^^Like that (and also mentioned in same post)
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