IRS: Here are the new income tax brackets for 2023

[Canon Shooter]

Sheesh you are clueless. The taxes are graduated based on the cost. A 300,000 home isn't taxed at the same rate that a 30,000,000 home is. With no income tax to waste peoples time, there is no need for IRS agents, no need for a plethora of CPA's, and tax attorneys etc. All of that wasted time, and money with our current system. GONE.

The average cost for a home in the United States sits right around $350K.

What would be the tax on something like that compared to what they currently are? What would be the taxes on the Maybach you claim you own?

 

[westwall]

The average cost for a home in the United States sits right around $350K.

What would be the tax on something like that compared to what they currently are? What would be the taxes on the Maybach you claim you own?

I don't know what the rate would be. That is a number that would have to be worked out. The tax was 13,700 and the registration was 2833.

 

[Leo123]

Released yesterday link

The IRS has released higher federal tax brackets for 2023 to adjust for inflation.
The standard deduction is increasing to $27,700 for married couples filing together and $13,850 for single taxpayers.

There are also changes to the alternative minimum tax, estate tax exemption, earned income tax credit and flexible spending account limits, among others.

Amid soaring inflation, the IRS this week announced higher federal income tax brackets and standard deductions for 2023.

The agency has boosted the income thresholds for each bracket, applying to tax year 2023 for returns filed in 2024.

These brackets show how much you’ll owe for federal income taxes on each portion of your “taxable income,” calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income.

Higher standard deduction
The standard deduction will also increase in 2023, rising to $27,700 for married couples filing jointly, up from $25,900 in 2022. Single filers may claim $13,850, an increase from $12,950.



In before financial illiteracy manifests itself.

So....Biden lied again but, what's new?

 

[Canon Shooter]

I don't know what the rate would be. That is a number that would have to be worked out. The tax was 13,700 and the registration was 2833.

Presumably the tax would be much higher under your plan, yes?

 

[westwall]

The average cost for a home in the United States sits right around $350K.

What would be the tax on something like that compared to what they currently are? What would be the taxes on the Maybach you claim you o

Presumably the tax would be much higher under your plan, yes?

For the Maybach? Yup. Sales tax on everything would be graduated. That's the point. The middle class and the poor get a big break, the rich get to pay more for their toys.

The hard part is balancing it so that the creators if those toys are allowed to create.

When a high ticket item tax was passed, as a for instance, the yacht makers were out of business as the rich bought their yachts where there was no tax.

 

[Canon Shooter]

For the Maybach? Yup. Sales tax on everything would be graduated. That's the point. The middle class and the poor get a big break, the rich get to pay more for their toys.

The hard part is balancing it so that the creators if those toys are allowed to create.

When a high ticket item tax was passed, as a for instance, the yacht makers were out of business as the rich bought their yachts where there was no tax.

Would the increase in tax on a new home and a new car come in less than the current taxes coupled with income tax?

Because if it doesn't (and I question whether or not it would), you get resistance to this.

A state like Oregon would be in even more of a shambles than it is now. Oregon doesn't have a state sales tax, and instituting one would be a major deal, regardless if income tax went away...

 

[westwall]

Would the increase in tax on a new home and a new car come in less than the current taxes coupled with income tax?

Because if it doesn't (and I question whether or not it would), you get resistance to this.

A state like Oregon would be in even more of a shambles than it is now. Oregon doesn't have a state sales tax, and instituting one would be a major deal, regardless if income tax went away...

Of course. That is the point. Let the poor and middle class keep more of their money. The rich can afford to spend more, especially if they don't have to pay income tax. Everybody wins except the government, and lawyers.

 

[citygator]

I'm not wrong.

There's an old adage: The more you earn the more you spend. You can't say, with any degree of certainty, that someone who makes $800K a year "won't notice" $200K from their bank account. That's absurd.

Nor can you dictate what is "exorbitant" for anyone other than yourself. I own a Viking 61' Convertible sport fishing boat. And get this: I don't even like to fish.

Is that "exorbitant" to you? You could certainly get to wherever you need to go, in style, in a nice AMG GT 4-door, but you dropped about $90K more than you needed to to get the Maybach.

Is that "exorbitant"? Well, yeah, for me it is. But I don't know if it is for you, nor is it my place to say whether or not it should be considered exorbitant by you...



A couple making $920K a year would, according to the table above, be on the hook for $412,851.50 in taxes.

You're out of your mind if you believe they "won't notice" over $400K missing from their bank account...



I think I've successfully demonstrated the error in your thinking. Rounded off, that $412,851.50 represents, if you round it off, 46% of the couple's income.

There's not a single thing fair about that to anyone...

As a 1%er there is no amount of taxes that will affect my life.

 

[MarathonMike]

A married couple with $800K a year in taxable income, according to this chart, is going to pay about $226,000 in taxes; more than 28% of their income. A married couple with $50K a year in taxable income will pay about $6,250 in taxes, or roughly 12.5%.

Tell me again how the middle class is getting raped.

There's not a single reason in the world not to charge everyone the same percentage...

There are lots of reasons to have a tax code like ours. Unfortunately all the reasons are bad.

 

[Harpy Eagle]

So....Biden lied again but, what's new?

How so?

 

[Blues Man]

A married couple with $800K a year in taxable income, according to this chart, is going to pay about $226,000 in taxes; more than 28% of their income. A married couple with $50K a year in taxable income will pay about $6,250 in taxes, or roughly 12.5%.

Tell me again how the middle class is getting raped.

There's not a single reason in the world not to charge everyone the same percentage...

Taxable income is always less than total income so your percentage is off.

 

[Canon Shooter]

Taxable income is always less than total income so your percentage is off.

I was using the percentages in the image in the OP...

 

[Blues Man]

I was using the percentages in the image in the OP...

I get that but that chart still is for taxable income or adjusted gross income which is always less than total income.

And the problem there is that depending on deductions, dependents and other things like tax deferred retirement savings, people with varying gross incomes can have the same taxable income.

 

[Blues Man]

I am saying income taxes hurt the middle class period.

Do away with income tax and have a graduated sales tax to pay for government.

More expensive items have higher sales taxes.

A flat sales tax will work.

If we ever institute a consumption tax food, clothing up to a limit and prescription drugs have to be excluded.

People who buy more expensive items will be paying more sales tax anyway.

 

[Canon Shooter]

I get that but that chart still is for taxable income or adjusted gross income which is always less than total income.

And the problem there is that depending on deductions, dependents and other things like tax deferred retirement savings, people with varying gross incomes can have the same taxable income.

And if you look at post #4, you'll see where I clearly state "taxable income"...

 

[Blues Man]

And if you look at post #4, you'll see where I clearly state "taxable income"...

Using only taxable income is inaccurate when trying to figure out what the actual tax paid on gross income is. In fact using AGI only is meaningless in real life.

 

[westwall]

A flat sales tax will work.

If we ever institute a consumption tax food, clothing up to a limit and prescription drugs have to be excluded.

People who buy more expensive items will be paying more sales tax anyway.

Absolutely. Food should always be exempt, unless it is a true luxury item like caviar.

 

[DudleySmith]

The personal deduction should at least be what minimum wage would be adjusted for real inflation, i.e. around $60K-$66K, not anywhere near 'middle class'.

Actually wages shouldn't be taxed at all, since wages aren't real income, they're barter, trading time for cash, no capital gains involved.

 

[Winco]

A couple making $920K a year would, according to the table above, be on the hook for $412,851.50 in taxes.

This is incorrect. How did you figure that.
They would pay $270,314.
It's $186,601.50 + $83,712.50 = $270,314.00

Tell me I'm wrong.
If the highest bracket is 37%, it is impossible to pay more than 37%, your figure is 46%.

I think I've successfully demonstrated the error in your thinking. Rounded off, that $412,851.50 represents, if you round it off, 46% of the couple's income.

This is Wrong.

 

[Winco]

So....Biden lied again but, what's new?

This means the tax payer will pay LESS in FIT.