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How ? Greywar said $1 more would result in $.90 additional tax.
I used the tax tables to show the real results of a $1 increase.
There are lots of people that don't understand the tax laws.
How many times I have argued that the mortgage interest deduction is not dollar for dollar.
Greywar's example was hypothetical, but because you obviously aren't displaying reading comprehension skills.. you misrepresented the argument.
How ? Greywar said $1 more would result in $.90 additional tax.
I used the tax tables to show the real results of a $1 increase.
There are lots of people that don't understand the tax laws.
How many times I have argued that the mortgage interest deduction is not dollar for dollar.
Let me explain the difference between tax brackets, and line 44 on your tax forms.
Tax brackets are when the % rate of your income tax rate changes from X% to Y%
Line 44 on the 2013 tax forms is simply a convenience for maths sake. moving that extra dollar is not moving you into a new tax bracket. I suppose we could argue for people to do the math, but is often displayed here that might be asking too much. So instead we have a lookup table that is rounded in $50 dollar increments-why not $1 increments? Because who wants a 5000 page lookup table.
PS-another way of looking at it is...the next $49 dollars are 100% TAX FREE! WOOT!
Thus the ONLY paycheck where the extra income matters is your VERY last week of the year.
Let me explain the difference between tax brackets, and line 44 on your tax forms.
Tax brackets are when the % rate of your income tax rate changes from X% to Y%
Line 44 on the 2013 tax forms is simply a convenience for maths sake. moving that extra dollar is not moving you into a new tax bracket. I suppose we could argue for people to do the math, but is often displayed here that might be asking too much. So instead we have a lookup table that is rounded in $50 dollar increments-why not $1 increments? Because who wants a 5000 page lookup table.
PS-another way of looking at it is...the next $49 dollars are 100% TAX FREE! WOOT!
Thus the ONLY paycheck where the extra income matters is your VERY last week of the year.
What I first stated was that all it took was $1 to move you to the next bracket and add on to your tax.
Now what if that $1 was earned on 12/31 ? No you don't get your next $49 FREE
With Obamacare though people do need to pay close attention to what they are earning due to the subdizies.
Go over and you could lose all those subsidies which means you have to pay them back come next April.
But this discussion has gotten the thread off track which is about the 75% tax in France.
What I first stated was that all it took was $1 to move you to the next bracket and add on to your tax.
Now what if that $1 was earned on 12/31 ? No you don't get your next $49 FREE
With Obamacare though people do need to pay close attention to what they are earning due to the subdizies.
Go over and you could lose all those subsidies which means you have to pay them back come next April.
But this discussion has gotten the thread off track which is about the 75% tax in France.
Thats not a tax bracket. And as I said, unless its the VERY last paycheck of the year it doesn't matter. Your "example" is fairly rare, and averaged over every year it averages out to no effect.
Anyways back to France. Anyone know the total tax burden is in France?
Thats not a tax bracket. And as I said, unless its the VERY last paycheck of the year it doesn't matter. Your "example" is fairly rare, and averaged over every year it averages out to no effect.
Anyways back to France. Anyone know the total tax burden is in France?
Well it depends. I had a windfall one year that would have creamed me in taxes as I plan so I pay a few hundred each year. I was able to defer that until the next year so I could adjust my withholding and also sell off a few loser stocks to offset it.
See I plan my taxes so that I pay each year. Uncle Sam doesn't get use of my money for a year; I get use of Uncle Sam's money for a year !! Even though it's my money to begin with..go figure.
Uhmmm..you do know that in the same post you state that actors weren't making more movies because they only made 9% of their income a hour, AND that few paid that rate in reality....in fact that they were discussing tax shelters...tax shelters for the imaginary movies they weren't making?
The reality is that a high tax rate will not kill us. We've done it before, and didn't fall into the ocean.
Why would you want to?
The purpose of government is to defend my freedom, not force me to be slave.
This seems irrelevant to tax codes. Since taxes affect earnings, the risk has already been realized by the time the tax collector comes around. It's most certainly about return, but has nothing to do with risk.
Really?
Is every liberal a grade-school dropout?
Imagine for a minute, that I have a cool million to invest in a new venture.
As equity owner, I realize my return from profits made by the company. I invest a cool 1 mil and in 5 years I want 1.5 mil return. At zero percent tax rate, I can recoup my investments in the first 1 million profit and my return in the next half million profit. Total profit required - 1.5 million. The chances of a 1 million dollar venture making 1.5 million in 5 years - not bad.
At 75% tax rate, the business will have to earn 6 mil for me to reach my goal. The chances of a business started with 1 million profiting 6 million in 5 years basically do not exist. Ergo, I will invest elsewhere, or not invest at all.
It seems you people forget that investors recoup their investments with AFTER TAX PROFITS.
Imagine for a minute, that I have a cool million to invest in a new venture.
As equity owner, I realize my return from profits made by the company. I invest a cool 1 mil and in 5 years I want 1.5 mil return. At zero percent tax rate, I can recoup my investments in the first 1 million profit and my return in the next half million profit. Total profit required - 1.5 million. The chances of a 1 million dollar venture making 1.5 million in 5 years - not bad.
At 75% tax rate, the business will have to earn 6 mil for me to reach my goal. The chances of a business started with 1 million profiting 6 million in 5 years basically do not exist. Ergo, I will invest elsewhere, or not invest at all.
It seems you people forget that investors recoup their investments with AFTER TAX PROFITS.
He's arguing semantics with you. You're arguing reality. Technically you are both right. You're just more based upon what actually occurs.
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