Jon
The CPA
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
There are more than monetary factors to take into account. If someone could work less and take a small cut in pay, they will. Taxes are not supposed to change the way taxpayers behave, but they do. Yes, there are some people who work LESS and EARN less because their realized value of that time is less profitable.
Your example assumes a taxpayer forgoes $19,500 in after tax dollars to work less. You tell me. If you make $250,000 a year, would you forgo $19,500 to spend more time with your family and friends and have more leisure time? I sure as hell would.