deacdiggler
"Well known member"
- Joined
- Mar 28, 2011
- Messages
- 24,235
- Reaction score
- 12,495
Effective taxrate 31%, marginal taxrate 43%, I do not make six figures. California sucks.
How is this possible? The 31% bracket kicks in over 100k.
Effective taxrate 31%, marginal taxrate 43%, I do not make six figures. California sucks.
Effective taxrate 31%, marginal taxrate 43%, I do not make six figures. California sucks.
How is this possible? The 31% bracket kicks in over 100k.
He's saying his "marginal" rate is 43%. That's an income tax concept entirely. Even if he was in the 31% federal bracket he wouldn't be at 43% even at the highest California rate.
Sure they do. If I did not have the mortgage interest deduction, I would pay $6,000 more in federal and state income taxes. That's pretty significant. People would have to seriously alter their budgets if it went away.
Also, dividends should be taxed at a lower rate. That money was already taxed at 35% at the corporate level, another 35% would be insane.
And on capital gains, anyone who is willing to risk their after tax money on investing in a business should have some incentive to do so since it is all at risk. Not to mention, investing helps the economy grow by giving companies money to hire and innovate.
Ordinary income is at a higher rate because it is not taxed until it gets int he hands of an employee.
Sure they do. If I did not have the mortgage interest deduction, I would pay $6,000 more in federal and state income taxes. That's pretty significant. People would have to seriously alter their budgets if it went away.
Also, dividends should be taxed at a lower rate. That money was already taxed at 35% at the corporate level, another 35% would be insane.
And on capital gains, anyone who is willing to risk their after tax money on investing in a business should have some incentive to do so since it is all at risk. Not to mention, investing helps the economy grow by giving companies money to hire and innovate.
Ordinary income is at a higher rate because it is not taxed until it gets int he hands of an employee.
how big is your mortgage? or do you have a really high interest rate?
I'm not over the FICA max yet (4%). + medicare (1.65%) + 9.3% california + 28% Federal = 42.95%. Would be 45% without the payroll tax holiday.
6000/.28/12 = 1,785/mo in interest payments for that to be true. For a single person making under 178k/yr, that would be true for any 5% mortgage of around $450,000. Doesn't have to be a large mortgage or a large interest rate to be true.
investing m oney in the stock market is no different than gambling money in casinos.
In fact gambling more directly creates jobs than buying 100 shares of Google.
Should gambling winnings also be free of taxes? How about lottery winnings?
Haha, who pays taxes on gambling winnings? hell, who even makes money gambling.
Are taking into account your personal exemption and federal deduction for state income taxes (which I assume is higher than the standard deduction based on the 9.3% rate and never mind any other deductions if you are itemizing)?
and you wonder why it's not good to play poker with this guy?
Actually I could be wrong and its slightly higher than 450,000 @ 5% if he would otherwise use his standard deduction. Thats why I busted out in day 4, I know enough to get close and get one of those W-2's.
If you hit a slot machine for over $1500, you have to immediately fill out a W2.
If you are at the track or at a casino sportsbook and hit a bet that pays over 300-1, you have to fill out paperwork.
If you cash over $10,000 in chips at many casinos you have to prove how much started with or fill out paperwork.
If you hit a lottery for over $600, you have to pay taxes on it.
There's no reason buying stocks on major exchanges is any different.
you may have something to say about investing in actual startup businesses. But zero is crazy.
Actually I could be wrong and its slightly higher than 450,000 @ 5% if he would otherwise use his standard deduction. Thats why I busted out in day 4, I know enough to get close and get one of those W-2's.
All true, but those things are relatively rare. I can't imagine the gov't receives any significant revenue from declared gambling winnings. Most have gambling losses to offset.
Buying stocks is completely different. Someone risked everything when investing in Google as a start up knowing that if it succeeded, there would be a market for them to cash out. And in the mean time, helped create thousands of jobs, hell with google, millions. Without people willing to invest in the market, incentive to grow companies, hire people and innovate would shut down. There should be an incentive to be a part of that.