California: Liberal Experiament Gone Bad? (school, income, property taxes)

[BennyPhoenix]

Originally Posted by Tallysmom

Nope -- I just pulled 2008 taxes and my fed AGI is 67739. And I owed 1350.00 in taxes.

Everybody figures it as a flat tax, and it's NOT a flat tax. You aren't paying a straight percentage X earnings. You pay a set amount in your bracket + a percentage of the overage of the minimum.

In other words -- my AGI of 67739 has Calfornia deductions and exemptions deducted from it and that made my CA taxable income 57434. So it's in the 51,088 to 70,920 range. I have to pay set amount of 1259.58 + 6% of the amount over 51,088.

Or use the Tax Table -- which my accountant did and the tax table states $1548 owed. With an personal excemption of 198 bucks that brought the the tax owed to 1350.00.

Still a far cry from the $5341 I'd owe under the way you figured it.

Thanks, by the way -- you made me get out my taxes and really read them suckers... so now I KNOW I'm right... and why.

You are not right. You initially said $110,000 income. Now you're saying $57434? That's over a $50,000 difference in AGI.

[BennyPhoenix]

Originally Posted by Ultrarunner

Even at 15k per student, the public schools in my city are failing... how can private and charter schools in the same city turn out high achievers for less?

Clearly, money is not the deciding factor... my Father was a CA public High School Teacher till he left because he felt the teacher's union was no longer about the students...

Some of the top students are home schooled at a cost to the taxpayer's of next to nothing...

Money is a BS issue. The worthless unions and their scumsucking marxist cronies just want the taxpayer money.
Washington DC consistently has the one of the highest per student spending in the country, yet they have one of the worst school systems.

[Tallysmom]

Originally Posted by BennyPhoenix

You are not right. You initially said $110,000 income. Now you're saying $57434? That's over a $50,000 difference in AGI.

I AM right. Gross receipts 131625. Part of that is business expenses for the supplies we buy for our buildings that comes off top and office supplies and basic business stuff, so business income is 111,116.

Take off capital loss of 2110, total income 109183.

I can deduct 1/2 of my self employment tax of 7812, my SEP-IRA of 15000, our IRAs of 10000, and self employed health insurance of 8632 -- leaving and AGI of 67739. for Fed.

Take that to the CA form 540, and there is a depreciation credit of 428 for the business, bringing my CA AGI to 68167, and then I take a CA itemized deductions of 10733 (for the IRAs and Self Employment Tax and SEP-IRA and health insurance), which leaves me with a taxable income of 57434.

Look on the tax table for 2008 under 2, which is married filing joint and the tax payable is 1548, less our 198 personal expemption leaves a total tax due of 1350.00 http://www.ftb.ca.gov/forms/2008/08_540tt.pdf

I overpaid on my quarterly taxes, so I got a refund -- which is rare.

Keep in mind, not only do I have to shove 25K into retirement to lower our income, I also pay all our social security payments in the form of self employment tax. It amounts to 15624 a year and I pay federal tax on top of that to go up to a total of 22K a year to the Fed. I usually end up paying a little more at the end of the year, but my state tax is around 1300-1500 a year.

So there you have it -- a snapshot of why you are NOT paying 9.3% on your California income. And if you are, you need a better accountant.

[BennyPhoenix]

You stated that your income was $110,000 and that you paid tax on that.
You didn't pay tax on that. You paid tax on about $67,000. That is a huge difference.
Like I said from the beginning, you didn't state the entire story.

[mysticaltyger]

Originally Posted by Motion

How do you feel about George Will's article?

Yes, I mostly agree with Will's article. However, you are NOT helping the cause by misspelling the word "experiement".

[mysticaltyger]

Originally Posted by BennyPhoenix

Then you aren't telling the whole story.
The Calif tax rate for an adjusted gross income of $110,000 is 9.3%. Your total tax bill would have been $10,230

9.3% is a MARGINAL rate. That means it only applies to income earned above a certain dollar amount. The first few thousand you earn isn't subject to state income tax at all. The next few thousand above that is subject to tax, but at a lower rate than 9.3%, etc.

Your post would indicate you don't understand how the income tax system works.

[Tallysmom]

Originally Posted by mysticaltyger

9.3% is a MARGINAL rate. That means it only applies to income earned above a certain dollar amount. The first few thousand you earn isn't subject to state income tax at all. The next few thousand above that is subject to tax, but at a lower rate than 9.3%, etc.

Your post would indicate you don't understand how the income tax system works.

Thank you! I am tired of people saying we pay almost 10% tax when it's clear we don't...

[Motion]

Originally Posted by mysticaltyger

Yes, I mostly agree with Will's article. However, you are NOT helping the cause by misspelling the word "experiement".

You misspelled it also. It's experiment

[Clnconcpts]

what ever happen to all this lottery money that was suppose to go to all the schools?There is more money missing from this then what Prop 13 has done.

Why would one complain about this?

[BennyPhoenix]

Originally Posted by mysticaltyger

9.3% is a MARGINAL rate. That means it only applies to income earned above a certain dollar amount. The first few thousand you earn isn't subject to state income tax at all. The next few thousand above that is subject to tax, but at a lower rate than 9.3%, etc.

Your post would indicate you don't understand how the income tax system works.

I get what you are saying.
My point was the poster stated a tax she paid on an income of $110,000. That was not true however. She paid a tax on an AGI of about $67,000. That is a big difference.