$249,999.00 Is the Goal

[WillowTree]

there would be no benefit to pair their business down....the op is utterly ridiculous and i have to wonder if these people mouthing this crap even do their own taxes or understand how the tax structures works?

Sounds to me like they are cluless, absolutely clueless...

let's say your taxable income is $280k instead of the 249.9k, the only extra taxes they would pay in income taxes is the difference between 35% in taxes and 28% in taxes ON THE 30K over the 250k only.

so in this case, for making $30,000 MORE, they will have to pay about $2100 more in taxes than they did under their previous tax structure.

So, for $30k more in taxable income they will pay $10,500 in taxes verses $8400 that they would be paying if the tax break of their bracket did not expire in 2011.

Bringing home almost $20k out of that $30k with the new tax structure....

are you saying that this woman in the article would really keep her own income down to avoid paying a 7% increase on her taxable income over and above the $250k....and she would turn down the $20k extra she could add NET to her yearly earnings?

Bulloneyyyyyyyyyyyyyy.

Care

Precisely as I see it.

If someone wants to prove a point and cut back signficantly on their income just so they don't have to pay a little more in taxes, then I say "Have fun!"

yep! and the extra benefit of more time with the family to relax and actually enjoy your 249,999.00 too.. I'd be happy!

 

[Care4all]

To think people will work hard, so others can benefit isn't the stimulus that is likely to work:

ABC News: Upper-Income Taxpayers Look for Ways to Sidestep Obama Tax-Hike Plan

Upper-Income Taxpayers Look for Ways to Sidestep Obama Tax-Hike Plan
President Would Slap More Taxes on Those Who Make Over $250K to Fund Health Care

By EMILY FRIEDMAN
March 2, 2009 —

President Barack Obama's tax proposal  which promises to increase taxes for those families with incomes of $250,000 or more -- has some Americans brainstorming ways to decrease their pay, even if it's just by a dollar.

A 63-year-old attorney based in Lafayette, La., who asked not to be named, told ABCNews.com that she plans to cut back on her business to get her annual income under the quarter million mark should the Obama tax plan be passed by Congress and become law.

So far, Obama's tax plan is being looked at skeptically by both Democrats and Republicans and therefore may not pass at all....

Okay, I've got to be honest here; this woman is not real bright. That's her perogative though. I'm not thrilled with the tax increase on the wealthy. I'm not too upset though, but I do think that $250,000 is too low of a number. This starts the tax increase at a much lower level than it did under Clinton. I believe Clinton started the highest bracket at $280,000 to $290,000. When it was first put in place, the number was lower, but those levels were raised yearly to account for inflation. Based on that, the number should be closer to $350,000 now.

Here's the thing. The rate increase only effects income over $250,000. If this woman makes $350,000, she will be taxed an additional $4600. On the additional $100,000 of income over the $250,000, she'll pay $39,600 instead of the current $35,000. On the first $250,000, she'll pay what she paid before. So, in this example, she would be choosing to give up $60,400, less her state taxes, just so she doesn't have to pay the extra $4600 in taxes.

I know if I was in her shoes, I'd be upset about having to pay more. But I sure as hell wouldn't choose to reduce my income by such a large amount just because I had to pay an extra $4600.

I also suggested this yesterday and the day before, i also believe the threshold shold be a little higher...i was willing even to go up to a million bucks before kicking in because i felt many of these people earning these incomes were in metropolitan cities on the east and west coast, and I felt the cost of living was so high in these spots that the threshold needed to be higher to accomodate such....

But none the less, i still say the lawyer doesn't have a lightbulb on, at least when it comes to her own tax situation with a progressive tax structure.

Care

 

[auditor0007]

To think people will work hard, so others can benefit isn't the stimulus that is likely to work:

ABC News: Upper-Income Taxpayers Look for Ways to Sidestep Obama Tax-Hike Plan

Upper-Income Taxpayers Look for Ways to Sidestep Obama Tax-Hike Plan
President Would Slap More Taxes on Those Who Make Over $250K to Fund Health Care

By EMILY FRIEDMAN
March 2, 2009 —

President Barack Obama's tax proposal  which promises to increase taxes for those families with incomes of $250,000 or more -- has some Americans brainstorming ways to decrease their pay, even if it's just by a dollar.

A 63-year-old attorney based in Lafayette, La., who asked not to be named, told ABCNews.com that she plans to cut back on her business to get her annual income under the quarter million mark should the Obama tax plan be passed by Congress and become law.

So far, Obama's tax plan is being looked at skeptically by both Democrats and Republicans and therefore may not pass at all....

I'm with Ravi. I bet she's lying. We know that cons (cough, cough Joe not the Plumber) wil lie about their personal circumstances to parrot a rightwing talking point to media.

Please explain why the economy boomed when clinton raised the top marginal tax rate on the rich in 1993. thanks.

Raising the rates didn't make the economy boom. The economy boomed because of Reagan's tax cuts, as a starter, which made much more money available for investment. But the main reason the economy boomed is that we experienced a huge leap in technology that provided new things to buy, that everyone wanted. The growth of the economy can be attributed to two things for the most part; cell phones and computers. The production and sale of these new toys made many a people very rich, and it provided millions of new jobs. Unfortunately, by 2000, most everyone that could afford a cell phone or computer had one. The bubble burst, and we came back to reality.

Clinton was the beneficiary of this leap in technology, and it made it easy to raise taxes, which actually allowed him to run the government with smaller deficits than normal. None the less, government continued to grow under Clinton, and that never stopped when Bush took over.

 

[Ravi]

To think people will work hard, so others can benefit isn't the stimulus that is likely to work:

ABC News: Upper-Income Taxpayers Look for Ways to Sidestep Obama Tax-Hike Plan

Okay, I've got to be honest here; this woman is not real bright. That's her perogative though. I'm not thrilled with the tax increase on the wealthy. I'm not too upset though, but I do think that $250,000 is too low of a number. This starts the tax increase at a much lower level than it did under Clinton. I believe Clinton started the highest bracket at $280,000 to $290,000. When it was first put in place, the number was lower, but those levels were raised yearly to account for inflation. Based on that, the number should be closer to $350,000 now.

Here's the thing. The rate increase only effects income over $250,000. If this woman makes $350,000, she will be taxed an additional $4600. On the additional $100,000 of income over the $250,000, she'll pay $39,600 instead of the current $35,000. On the first $250,000, she'll pay what she paid before. So, in this example, she would be choosing to give up $60,400, less her state taxes, just so she doesn't have to pay the extra $4600 in taxes.

I know if I was in her shoes, I'd be upset about having to pay more. But I sure as hell wouldn't choose to reduce my income by such a large amount just because I had to pay an extra $4600.

I also suggested this yesterday and the day before, i also believe the threshold shold be a little higher...i was willing even to go up to a million bucks before kicking in because i felt many of these people earning these incomes were in metropolitan cities on the east and west coast, and I felt the cost of living was so high in these spots that the threshold needed to be higher to accomodate such....

But none the less, i still say the lawyer doesn't have a lightbulb on, at least when it comes to her own tax situation with a progressive tax structure.

Care

I think it is higher, I'm not sure where the $250,000 figure comes from. I understand only the percentages will change, not the income levels. They are currently (for a single person, head of household):

Head of Household Filing Status

(Tax Rate Schedule Z)

• 10% on the income between $0 and $11,950
• 15% on the income between $11,950 and $45,500; plus $1,195
• 25% on the income between $45,500 and $117,450; plus $6,227.50
• 28% on the income between $117,450 and $190,200; plus $24,215
• 33% on the income between $190,200 and $372,950; plus $44,585
• 35% on the income over $372,950; plus $104,892.50

 

[auditor0007]

there would be no benefit to pair their business down....the op is utterly ridiculous and i have to wonder if these people mouthing this crap even do their own taxes or understand how the tax structures works?

Sounds to me like they are cluless, absolutely clueless...

let's say your taxable income is $280k instead of the 249.9k, the only extra taxes they would pay in income taxes is the difference between 35% in taxes and 28% in taxes ON THE 30K over the 250k only.

so in this case, for making $30,000 MORE, they will have to pay about $2100 more in taxes than they did under their previous tax structure.

So, for $30k more in taxable income they will pay $10,500 in taxes verses $8400 that they would be paying if the tax break of their bracket did not expire in 2011.

Bringing home almost $20k out of that $30k with the new tax structure....

are you saying that this woman in the article would really keep her own income down to avoid paying a 7% increase on her taxable income over and above the $250k....and she would turn down the $20k extra she could add NET to her yearly earnings?

Bulloneyyyyyyyyyyyyyy.

Care

did you add on all the other taxes? like state,, sales,,capital gains,, ??????

I don't blame them one bit.. who does want to work their ass off so some libral can take it and hand it over to some one who dosen't have the will to try to excel?

My biggest beef with raising taxes is that it is never used to help balance or control the budget. It's just thrown toward more programs that don't benefit anyone.

 

[WillowTree]

My guess this lady is doing it on "principle" a lot of people are pissed at the idea of "wealth redistribution" the idea that someone works hard, goes to school and builds a rewarding career only to be punished for their success by having to pay ever increasing taxes does something to incentive..

 

[Ravi]

My guess this lady is doing it on "principle" a lot of people are pissed at the idea of "wealth redistribution" the idea that someone works hard, goes to school and builds a rewarding career only to be punished for their success by having to pay ever increasing taxes does something to incentive..

My guess is that this women is really stupid and a poor lawyer. And the reporter is pretty stupid as well.

 

[manu1959]

if you can manage your income to end up not giving more money to the government wouldn't you do it .....

or do all of you just not care and throw a few extra bucks in to make sure the government can buy sandwiches....

 

[Annie]

Most people do not mind 'giving money' to needy people or causes. The idea of punishing the productive classes though is nonsense. Set up class warfare, then tax the middle anyways.

 

[WillowTree]

My guess this lady is doing it on "principle" a lot of people are pissed at the idea of "wealth redistribution" the idea that someone works hard, goes to school and builds a rewarding career only to be punished for their success by having to pay ever increasing taxes does something to incentive..

My guess is that this women is really stupid and a poor lawyer. And the reporter is pretty stupid as well.

figures Ravi,, figures,, I'm sure she'll miss yer business! why don't you and your friends boycott her,, I'm sure you'd expect pro bono anyways!

 

[WillowTree]

if you can manage your income to end up not giving more money to the government wouldn't you do it .....

or do all of you just not care and throw a few extra bucks in to make sure the government can buy sandwiches....

Now really buddy! Knowing what you know,, how many rich Democrats do you think give the government extra money??? Hell you can't even get them to give the money they owe!

 

[Care4all]

if you can manage your income to end up not giving more money to the government wouldn't you do it .....

or do all of you just not care and throw a few extra bucks in to make sure the government can buy sandwiches....

of course, every legal deduction i could take....i would hope i am taking, when preparing my taxes this month, but what does this have to do with what this woman said?

care

 

[del]

if you can manage your income to end up not giving more money to the government wouldn't you do it .....

or do all of you just not care and throw a few extra bucks in to make sure the government can buy sandwiches....

of course, every legal deduction i could take....i would hope i am taking, when preparing my taxes this month, but what does this have to do with what this woman said?

care

i've know lots of people who turn down work or don't work overtime because the tax liability makes it not worth it to them. i don't see what the big deal is.

 

[Care4all]

if you can manage your income to end up not giving more money to the government wouldn't you do it .....

or do all of you just not care and throw a few extra bucks in to make sure the government can buy sandwiches....

of course, every legal deduction i could take....i would hope i am taking, when preparing my taxes this month, but what does this have to do with what this woman said?

care

i've know lots of people who turn down work or don't work overtime because the tax liability makes it not worth it to them. i don't see what the big deal is.

HOW? how, under our income tax structure, it makes it not worth it to them in this case? HOW? OR your friends cases....?

I just would like one person who honestly believes this, show me how it would not be worth making a few extra bucks within our income tax structure?

show me the numbers.....please.... anyone..... i will gladly swallow what i have said on this if someone could just show me how making more money would not be worth it....because of income taxes?

care

 

[manu1959]

of course, every legal deduction i could take....i would hope i am taking, when preparing my taxes this month, but what does this have to do with what this woman said?

care

i've know lots of people who turn down work or don't work overtime because the tax liability makes it not worth it to them. i don't see what the big deal is.

HOW? how, under our income tax structure, it makes it not worth it to them in this case? HOW? OR your friends cases....?

I just would like one person who honestly believes this, show me how it would not be worth making a few extra bucks within our income tax structure?

show me the numbers.....please.... anyone..... i will gladly swallow what i have said on this if someone could just show me how making more money would not be worth it....because of income taxes?

care

is ten extra bucks worth it.....you are assuming that it is tens of thousands.....sure if i could make that much more.....

maybe she is just trying to make a point.....maybe she just doesn't want to contribute to this ..... everyone protests things in their own way ....

 

[auditor0007]

of course, every legal deduction i could take....i would hope i am taking, when preparing my taxes this month, but what does this have to do with what this woman said?

care

i've know lots of people who turn down work or don't work overtime because the tax liability makes it not worth it to them. i don't see what the big deal is.

HOW? how, under our income tax structure, it makes it not worth it to them in this case? HOW? OR your friends cases....?

I just would like one person who honestly believes this, show me how it would not be worth making a few extra bucks within our income tax structure?

show me the numbers.....please.... anyone..... i will gladly swallow what i have said on this if someone could just show me how making more money would not be worth it....because of income taxes?

care

I can see this happening more with those in the middle class, or lower middle class. Let's say you're in the 15% tax bracket. Now, let's assume you make $20 per hour. Your current salary pays the bills, but there is nothing left for extras, so you want to take a part-time job to give yourself some extra spending money. Unfortunately, most part-time jobs don't pay that well, so you take a part-time job that only pays $12 per hour and now you will be taxed 25% of that from the Feds plus your SS, Medicare, and State taxes. So now, after taxes, you are working for a net of around $7.50 per hour. Is it worth it? A lot of people would say no.

This is why I believe we should have a flat tax, one rate across the board for everyone on all forms of income. No loopholes, just your standard deduction and exemptions. Make the corporate rate the same as the personal rate, but don't double tax dividends. The wealthy would pay more, but the rate would most likely be much lower than the marginal rates they pay currently. The tax would still be progressive as those with lower incomes would still pay a smaller percentage of their income in taxes due to the standard deduction and exemptions allowed. You could still include an earned income credit as they do now, so some of the really low income working would get money back without even contributing.

I bet this would allow us to cut the size of the IRS in half, saving around $6 billion per year.

 

[Care4all]

i've know lots of people who turn down work or don't work overtime because the tax liability makes it not worth it to them. i don't see what the big deal is.

HOW? how, under our income tax structure, it makes it not worth it to them in this case? HOW? OR your friends cases....?

I just would like one person who honestly believes this, show me how it would not be worth making a few extra bucks within our income tax structure?

show me the numbers.....please.... anyone..... i will gladly swallow what i have said on this if someone could just show me how making more money would not be worth it....because of income taxes?

care

is ten extra bucks worth it.....you are assuming that it is tens of thousands.....sure if i could make that much more.....

maybe she is just trying to make a point.....maybe she just doesn't want to contribute to this ..... everyone protests things in their own way ....

that's fine and dandy if she had a point, but bet your bottom dollar, any normal person with any kind of work drive or ethic, will work their buns off to do the best job they can and if that meant they made more money.... they wouldn't turn it down... no matter the $700 bucks more in taxes for every $10k more in taxable income earned!

 

[WillowTree]

HOW? how, under our income tax structure, it makes it not worth it to them in this case? HOW? OR your friends cases....?

I just would like one person who honestly believes this, show me how it would not be worth making a few extra bucks within our income tax structure?

show me the numbers.....please.... anyone..... i will gladly swallow what i have said on this if someone could just show me how making more money would not be worth it....because of income taxes?

care

is ten extra bucks worth it.....you are assuming that it is tens of thousands.....sure if i could make that much more.....

maybe she is just trying to make a point.....maybe she just doesn't want to contribute to this ..... everyone protests things in their own way ....

that's fine and dandy if she had a point, but bet your bottom dollar, any normal person with any kind of work drive or ethic, will work their buns off to do the best job they can and if that meant they made more money.... they wouldn't turn it down... no matter the $700 bucks more in taxes for every $10k more in taxable income earned!

kool aid kool aid tastes great

 

[del]

of course, every legal deduction i could take....i would hope i am taking, when preparing my taxes this month, but what does this have to do with what this woman said?

care

i've know lots of people who turn down work or don't work overtime because the tax liability makes it not worth it to them. i don't see what the big deal is.

HOW? how, under our income tax structure, it makes it not worth it to them in this case? HOW? OR your friends cases....?

I just would like one person who honestly believes this, show me how it would not be worth making a few extra bucks within our income tax structure?

show me the numbers.....please.... anyone..... i will gladly swallow what i have said on this if someone could just show me how making more money would not be worth it....because of income taxes?

care

apparently they made the personal decision that the money they would net after taxes would not be worth the time/effort involved or the time not spent pursuing something else.

i really don't see anything particularly mind boggling about it.

 

[Annie]

i've know lots of people who turn down work or don't work overtime because the tax liability makes it not worth it to them. i don't see what the big deal is.

HOW? how, under our income tax structure, it makes it not worth it to them in this case? HOW? OR your friends cases....?

I just would like one person who honestly believes this, show me how it would not be worth making a few extra bucks within our income tax structure?

show me the numbers.....please.... anyone..... i will gladly swallow what i have said on this if someone could just show me how making more money would not be worth it....because of income taxes?

care

apparently they made the personal decision that the money they would net after taxes would not be worth the time/effort involved or the time not spent pursuing something else.

i really don't see anything particularly mind boggling about it.

Simple, with the disincentives towards productivity, time can be better spent with family, vacationing, pursuing hobbies, etc.