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I like it but I need one modification or at least clarification before I could say I support it.
The tax brackets should apply in a cascading effect... that is to say:
On your first 0-60k (60k total x .12 = 7200), you get taxed on that sum at 12%
- Your effective rate at the top of this bracket is 12%
On your next 60k-250k (190k total x .24 = 45600), you get taxed on that sum at 24%
- Your effective rate at the top of this bracket is 21% or 52800
- BUT your rate at say 70k, near the bottom of the bracket would be ~14%
On your next 250k-1mil (750k total x .36 = 270000), you get taxed on that sum at 36%
- Your effective rate at the top of this bracket is 32.28%
Everything past 1mil (0 to Infinity x .4), you get taxed on that sum at 40%, honestly, with the way this is set up in a cascading fashion, I would just keep the 12% pattern that it has been moving in so far and say 48%
And reading your post again, that appears to be what you are suggesting anyway, if I am interpreting it correctly, so I am pretty sure we are in agreement.
Honestly, I would most prefer some sort of logarithmic progression formula that you just plug your total gross income from all sources into, and it spits out an answer based on a curve, and eliminate things like property and consumption taxes. I'd rather get taxed more on my input stream one time and not have to worry about further nickel and diming taxes, especially infinitely recurring taxes like property taxes. Just count income from inheritance as a part of that formula.
That's how income tax already works.
I can't believe people don't understand this aspect of our tax system. This is why you get the "why would I want to work harder to get a raise from 150K when $200K pushes me into a new tax bracket".
Because you only pay the higher rate on the amounts over $200K.
I like it but I need one modification or at least clarification before I could say I support it.
The tax brackets should apply in a cascading effect... that is to say:
On your first 0-60k (60k total x .12 = 7200), you get taxed on that sum at 12%
- Your effective rate at the top of this bracket is 12%
On your next 60k-250k (190k total x .24 = 45600), you get taxed on that sum at 24%
- Your effective rate at the top of this bracket is 21% or 52800
- BUT your rate at say 70k, near the bottom of the bracket would be ~14%
On your next 250k-1mil (750k total x .36 = 270000), you get taxed on that sum at 36%
- Your effective rate at the top of this bracket is 32.28%
Everything past 1mil (0 to Infinity x .4), you get taxed on that sum at 40%, honestly, with the way this is set up in a cascading fashion, I would just keep the 12% pattern that it has been moving in so far and say 48%
And reading your post again, that appears to be what you are suggesting anyway, if I am interpreting it correctly, so I am pretty sure we are in agreement.
Honestly, I would most prefer some sort of logarithmic progression formula that you just plug your total gross income from all sources into, and it spits out an answer based on a curve, and eliminate things like property and consumption taxes. I'd rather get taxed more on my input stream one time and not have to worry about further nickel and diming taxes, especially infinitely recurring taxes like property taxes. Just count income from inheritance as a part of that formula.
Yes.. that is the way it is now and how it should always be. When you jump to $60K in income you don't suddenly pay 24% on all the income below it. That would be silly.
Quote:
Originally Posted by dman72
That's how income tax already works.
I can't believe people don't understand this aspect of our tax system. This is why you get the "why would I want to work harder to get a raise from 150K when $200K pushes me into a new tax bracket".
Because you only pay the higher rate on the amounts over $200K.
It just hit me this year that contributing more to a 401K or HSA works to my benefit.. I should contribute just enough to avoid going into the higher 25% tax bracket. I'm going to have an unusually high tax bill this year because I sold a stake of a crypto currency called NEM earlier this year which put me well into the 33% bracket so I maxed out 401K and HSA contributions this year. Of course I miscalculated and didn't just hold BTC with it.. had I done that I'd be a millionaire now.
They count on the money from the beneficiaries of the tax plan to get them re-elected. They will get billions in campaign money from the top 0.1% as a reward if they pass this.
Not necessarily. Republicans can just talk about issues like abortion, gay marriage, and transgender bathrooms and they will be re-elected in a landslide.
As a social libertarian leaning moderate type who voted for Trump I can tell you that partial birth abortion is already mostly illegal anyways, early term abortion should stay legal, and I couldn't care less about what gays and transgender people do in their personal lives, or what bathroom they use. Birth control should be sold over the counter, all forms, no prescription required. This isn't 1950. People are having sex and be open about it, and that's here to stay.
If democrats would leave the guns alone and finally legalize marijuana and were like the democrat party of old that encouraged free speech instead of censoring it I'd be more apt to vote for them most of the time.
Something I've noticed is the democrats and republicans have flipped on freedom of speech. It used to be the republicans that wanted to censor everything and not offend certain groups, and the democrats pushing for free speech.. now it's the opposite. The snowflakes can't handle having their feelings hurt so they want to censor everything and shelter our children from everything... except sex.. they can learn all about that whey they are 7, get oversexualized, and they don't care. Its yet another thing that makes the democrat party unpopular in many people's eyes.
As it stands I can't get myself to like either party when they get too much power which is why I like gridlock states with a healthy mix of both parties, though given the choice I'll take the legal marijuana states first. My ultimate goal is to find the state that has a healthy mixture of both parties, legal pot, and good solid laws on civil asset forfeiture, something I believe should be outlawed. It's the dirty little secret of why the feds and state police like the war on drugs so much. You shouldn't be able to sieze people's assets unless they are convicted of a crime, and only if it's proven beyond a shadow of a doubt they acquired that asset entirely through illegal funds. Right now they seize billions of dollars in assets per year just because they can, and the burden of proof is on you to get it back, which usually requires a lawyer which takes half of anything you might get back. Entirely unconstitutional.
As a social libertarian leaning moderate type who voted for Trump I can tell you that partial birth abortion is already mostly illegal anyways, early term abortion should stay legal, and I couldn't care less about what gays and transgender people do in their personal lives, or what bathroom they use. Birth control should be sold over the counter, all forms, no prescription required. This isn't 1950. People are having sex and be open about it, and that's here to stay.
If democrats would leave the guns alone and finally legalize marijuana and were like the democrat party of old that encouraged free speech instead of censoring it I'd be more apt to vote for them most of the time.
Something I've noticed is the democrats and republicans have flipped on freedom of speech. It used to be the republicans that wanted to censor everything and not offend certain groups, and the democrats pushing for free speech.. now it's the opposite. The snowflakes can't handle having their feelings hurt so they want to censor everything. Its yet another thing that makes the democrat party unpopular in many people's eyes.
Now the most played out word, surpassing amazeballs from a few years back.
Unrestricted access to guns is as unpopular as PC culture, but Mr. Libertarian gun nuts conveniently ignore that.
Yes.. that is the way it is now and how it should always be. When you jump to $60K in income you don't suddenly pay 24% on all the income below it. That would be silly.
It just hit me this year that contributing more to a 401K or HSA works to my benefit.. I should contribute just enough to avoid going into the higher 25% tax bracket. I'm going to have an unusually high tax bill this year because I sold a stake of a crypto currency called NEM earlier this year which put me well into the 33% bracket so I maxed out 401K and HSA contributions this year. Of course I miscalculated and didn't just hold BTC with it.. had I done that I'd be a millionaire now.
Cool story bro.
401K is 1) a no brainer up to max employee match 2) almost always a no brainer unless you are going to make more in retirement than during your earning years.
An analysis in the article linked below, describes how unpopular the proposed Republican tax bill is, with a large majority of people-----only 25% at the present time approve of it. If the predictions come true, there could be a massive landslide in favor of democrats, in the 2018 congressional elections.
So why do republicans keep on pushing this legislation, when it's obvious that they could lose all their power because of it? I'm wondering if they might have something else in mind about maintaining power and it's not based on fair elections.
They have to do the bidding their Masters, and that is Not those that voted them in, their Masters are the ones that give them large amounts of money to run for re-election, Big Business and the Rich. Sadly the peons will forgive them and continue to support them because they have been fed the Lie that the right cares about them and that they are working in their best interests, and of-course that the Libs are evil and want to destroy the Nation. The good in having the GOP in total power is that they cannot get away with blaming every one of their failures on the Dems, since the Dems have no real power, so they will be stuck with them. Oh the far right will still believe it, it is not in the skill set of Sheep to question their masters, that will never change. But with that said there are still enough Americans that when they realize they are being bent over and violated will rebel and say enough is enough. The right can claim whatever they want, what matters are results, and right now after a year in power the results are lacking in a Biggly way and those things they do implement will harm both Libs and Cons alike, there will be no hiding from that fact. You can tell people that they are doing Great, but when they see the truth in their own lives those that still have an operational mind will call it what it truly is, BS.
I know many Dems do not realize this yet, but the Best thing that could ever happen to their messed up Party is the GOP winning full control of the Congress and Whitehouse, because now the American People can see for themselves if GOP can actually produce on all their rhetoric. Lessons are best learned the hard way, and when that happens the winds will change direction once again.
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....Repubs will crush the Dems again after the bill is passed and the economy skyrockets.
