I take the standard deduction. I think you should understand by now that if they absolutely must feel the need to have people deduct SALT on Schedule A, then it should be uncapped. Capping it hurts some upper middle class folks who would have paid less taxes pre 2017. For the millionth time, you cant come out with a tax cut where a very small percentage of people are actually paying more.
OT: Spam Calls.....
- Thread starter ChiefJusticeMarshall
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I take the standard deduction. I think you should understand by now that if they absolutely must feel the need to have people deduct SALT on Schedule A, then it should be uncapped. Capping it hurts some upper middle class folks who would have paid less taxes pre 2017. For the millionth time, you cant come out with a tax cut where a very small percentage of people are actually paying more.
Even by your standards, that's dumb. There are changes in the tax code that benefit some people and hurt other people all the time. Pretty much every time they make changes. The vast majority of tax payers came out either ahead or even with those changes. But a very few upper middle class tax payers didn't, and for some reason that pisses you off.
I think you should protest that next year by declining the standard deduction and itemize your deductions instead and pay more taxes. That will show those IRS bastards!
You cannot cut taxes for billionaires and corporations and raise taxes for some couple making 300K. Its not right. Cut taxes for everyone then.
I pay more because I live in a high tax area of Allegheny County, have a decent sized house, so it amounted to ~$1200-1500 more a year in taxes.
I am all for increasing some of the tax gradient. Don't quote me exactly, but if you make $150K you are taxed at a max of 24%, over $200K 32%. But if you say make $500K you are taxed at the same rate of 36% as someone making $5 million.
First off, why is the gradient an increase of 8% in those relatively middle, to high middle class, and above like $300K, it is only 4% to ad infinitum?
Right. There is a niche of folks who are paying more and that is so wrong. Recruitsreadstheseboards shouldn't get a tax increase to pay for David Tepper's tax cut. That's really one of the most unjust things I've ever heard of. But no one says anything because its a very small niche of people and those people are relatively well off anyway.
The higher rate is only on those incremental additional income .
Each portion of your income is taxed at the incremental rate .
Net income rate is what matters
Nobody pays the top marginal rate of their income .
For your $500k annual income the top marginal rate is 35% federally . Your net rate 28.4%
For the $5m annual income the marginal rate is 37% and the net rate is 36.07%
I've had to turn down a few promotions because I didn't want them to kick me into a higher tax bracket.
My school taxes are ridiculous, so I kind of miss the days of itemizing. It really feels like I'm setting that money on fire now. I mean I obviously comprehend the fact that the 2018 bump in standard deduction means I'm taking home more pay overall, but there's still a certain relativity to it all.
That is silly. The higher tax bracket only applies to the amount of money that you earn above the next tier in the tax code. So you will still pay the same amount of taxes on the money you currently earn.
I mean my net income rate federally is higher after the “tax cut “.
But, I knew my local tax rates when I bought our house.
As dumb as I know it is - I simply withhold more federally (no dependents ) just so it’s all a net wash at the end . More fed refund to offset the state and local for my wife who doesn’t get local withheld (employed out of state )
It didn't show up as a different font unfortunately. Sorry for my post now that I know you're not an idiot (or at least your post wasn't idiotic).
It didn't show up as a different font unfortunately. Sorry for my post now that I know you're not an idiot (or at least your post wasn't idiotic).
It's a statement I always enjoy when I see/hear someone make it. And the best part is that the math usually still plays out in their favor even if it did work like that.
I’m too old to have even seen your color of font - to be honest
I hear that claim a lot on the radio etc. Pensioners were complaining about an increase in pension payments that bumped them to the higher rate not understanding that the amount below the threshold was taxed at the same rate. So what was supposed to be a cookie given to the elderly to buy votes angered them all because of a lack of understanding of the tax rates.
Now our top tax rate is 39%, and I pay that on a significant part of my income. It does drive my behaviour as I am far less willing to pick up extra shifts. They have a standard rate they'll pay for taking an extra shift. At that tax rate, it's not usually worth it to me. I'll tell them I'll do it if it rains. They tell me they can't staff the hospital based on the weather. So I say "OK. Pay me cash through Facebook marketplace?"
Then some desperate plea goes out and some sucker does it.
That nearly 40% rate is the level where additional income for hard work is no longer worth it to me. I'll do it for something easy, but to cover a vacant overnight registrar shift, NFW!
Haha, that's definitely a good point when it comes to accepting extra work (as opposed to accepting a pay increase, which only a doofus wouldn't agree to).
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Truth
The fact hospital and other employers only staff the bare minimum is on them !
