Posts
Paying too much to Uncle Sam?
A 50% tax on lottery winnings is in no way a deterrent to those who play. The fact that one might win $20 million but only collect $10 million seems acceptable. Maybe it's true that lotteries are no more than a tax on the stupid.
Nonetheless, the following truth holds:
If you don't want to pay $1 million in income tax next year don't make $2 million (which is actually an exaggeration, you'd have to earn much more or have a lousy accountant to pay that much). If you want to pay less of a percentage of your wage to Uncle Sam, earn less. If you only want to pay $10k in income tax, keep those earnings down around $50k. That's what most people do ... on purpose ...
Stupid rich people, they're being scammed!
Subscribe to:
Post Comments (Atom)
18 comments:
Lol Bluto you crack me up!!
Hey thanks! I've just never understood the idea that rich people will make other people poorer if they have to pay more taxes. They'll earn what they need regardless and pass these expenses on to their employees or to consumers ...
Get that blog going. I'd like to read your stuff.
I wish you'd post on here more- I always enjoy reading your comments on HJ.
Thanks again ...
We are talking about 3%, aren't we? That's the so-called disincentive for higher earning?
That's the difference between the highest tax bracket and the so called "middle class" tax bracket.
The richest act as if they are the only ones working for the Government until May. So is the middle class -- paying USA country club dues at a 36 percent rate instead of 39.
The ONLY time the "persecuted rich" argument lines up on the spreadsheet is between $245K and $260, or somesuch.
Tiny window. Statistical anomaly. NOT a disincentive.
I was talking to my partner about this the other day- He pays about 200k in taxes. It isn't fair for a multiple business owner- who worked his ass off to get to where he is, and continues to work his ass off, To say to him- well just make less money- How do you tell someone to do that? If we didn't have to pay so much in taxes we could hire more people = which helps out the job market. So to have a tax break on the rich- helps out the working class- gives them more jobs. Now I'm not pretending to know about this- that is why I didn't get into a discussion with you about it haha. Now what I don't understand is why people would make less money on purpose- just so they don't have to pay more on taxes? That seems so silly.
It would be silly. Which is the point of my blog post.
It's also silly worry that anyone around the 200k tax bracket would hire more people if they had more money. Presumably you are running your business at its optimum level as it is. If hiring more people would yield a fatter bottom line for you, you would do it no matter how much you pay in taxes.
Higher taxes for you as an employer probably just means less wage available to your employees and a higher price on your product.
The way I see it anyway ... I appreciate your perspective.
Also Free,
During the last campaign, there was a lot of talk from folks like Joe the Plumber claiming they'd rather close their doors or not open a business in the first place than pay the increased tax Obama was proposing.
In essence, he was threatening that he'd rather earn a plumber's wage (around 50k) than go into business and earn around 200k because he'd be paying too much in taxes.
Silly indeed. The proposed increase (justifiable or not) would not have knocked his earnings down to anything near 50k and out of the equation is left the equity he would be building with his own business.
Another way to look at how decreased taxes will affect your partner is rather than giving a raise to his employees for producing so well, he implies he would keep them at the same wage and just hire someone else.
Decreasing your partner's taxes will not increase demand for his product. So it isn't automatic that less taxes would have your partner hiring more people,
I sound like such a Lib ...!
All that said, government spending is out of control and we are ALL taxed too much. We're all working very hard. There isn't necessarily a direct relation between 'working your tail off' and riches.
In my boyfriend's case he is a business consultant for top companies in the world- he doesn't necessarily have a product- I guess he would be the product?- and really we have no need for many employees. I was just trying to give a hypothetical example to help me understand what you were saying.
I wish I could understand this better- You said that government spending is out of control- but what i dont understand is that the govt doesn't have any money to spend- so the taxes are what pays govt programs? -it's all coming out of the tax payers money ...(I should have payed more attention in my govt and business classes!!) I get that not all poor people are lazy and not all rich people are a-holes. I wish we could come up with a system that works for everyone- but that is unrealistic. I appreciate your responses- I KNOW that i'm not well informed- but this helps me- I am interested. Thanks Bluto!
I'm not exactly 'Well Informed' either. But just as you are doing, I give it some off the cuff thought. It's interesting to me and experts do always find a way to beat me over the head with some truth I've yet to explore.
The problem with what our government does, as I understand it, is deficit spending. They aren't taxing and spending, they are borrowing and spending which ultimately will be paid for by some American generation one way or another.
I think we ought to tap into our oil supply and play it on the world market just like they are doing in the middle east.
Until then, restraining government spending by cutting out entitlements and getting the American public back to expecting to pay for what they use is paramount.
I agree we should 'tap' into our oil supply. My step dad lives out by Price and always tells me that we live on a huge oil supply but the environmentalist are trying to make all that land untouchable. Makes me think that the environmentalist have some sort of compartmentalization and the big guy is actually the govt.
Do you listen to Alex Jones? I know he has the reputation of being kind of coo coo but I love his radio show. Talks about govt cover-ups.
I keep hearing that the dollar is going to be worthless. That other countries are going to stop using the dollar in trade. The govt tells us they don't make more money- but that has got to be a lie right?. If the dollar is going to be worthless- it's because they caused it.
It seems like 'they' just want to have power and control and the rest of the country are sheep.
What's the point of all of this???
It is a natural disconnect.
When I pay $158K in taxes from my $350K salary, that number is demoralizing — money I see wasted that could otherwise been put to investment/job creation, etc.
And 3-percent more in taxes, well that means that number is closer to $168K.
Also I become indignant and look at lesser earners with contempt. "I pay 3X more in taxes than you earn in a year" I think when silently judging the $1,000/a week masses.
Yet we all pay $8 bucks for a movie, $9 a pound for ribeye and $38 a day for a rental car -- regardless of our tax bracket.
This creates the disconnect. With your post-tax $30K, your tax burden is quite limiting.
With my post-tax $192K (or even $182K), my tax burden is less limiting — to a ratio in excess of 8:1.
Do I want to pay more taxes? No.
But considering the relative burden rather than the number at the bottom of the CPA ledger, I feel pretty good about the taxes I DO pay.
Cracker,
I question the numbers you are using. The numbers on this site (http://www.mydollarplan.com/tax-brackets/) show a tax rate of 35% for salaries like the one you mentioned.
What should your income level have to do with the taxes you pay? Well, what should the price of milk have to do with the consumption tax you pay? Why not just pay a $20 tax on everything you purchase from gum to automobiles?
Your use of market prices is limited. Yes the price of milk is the price of milk, but a lot of what you are buying with your tax contribution is asset protection. Some of that involves public safety enforcement/protection, some of it is insurance against invasion secured by the US Military and some of it is just plain stability in the US economy. You have more to lose, you ought to pay more to hedge against such losses.
"Also I become indignant and look at lesser earners with contempt. "I pay 3X more in taxes than you earn in a year" I think when silently judging the $1,000/a week masses."
Give me a break.
While you quietly contemplate your indignation, consider the hypocrisy behind voicing an opinion in line with those who'd claim our progressive tax structure is aimed at 'getting even with the rich' while insinuating you'd like to 'get even' with those not towing enough rope in some arbitrary tug-o-war you've imagined ...
... you elitist devil's advocate you ...
Let me say this. I do not see the notion that those who employ others might employ more people if they pay less in taxes as a valid argument for tax cuts. On the other hand, as consumers, the more of our own money we keep for ourselves, the more we'll spend on things we value.
The more we spend, the more service we demand so the more people are hired to supply this demand.
Rather than the government trying to determine what is valuable, let we the people vote with our dollars. Rather than the government funding things we as a society are not willing to pay for ourselves, let provision of the goods and services we value prosper naturally following free-market principles. Let the rest fade away.
Hey Bluto- I put my blog back up- but there is nothing new on there haha. I've moved most of my posts to my draft folder so I can go through and edit them better. just thought id let you know. hope you are doing well. I find that HJ posts have been way negative lately- too much complaining about the stupidest stuff.
Right on. I was browsing it a bit. Pretty inspiring stuff actually. All is well. Thanks for the update.
Surely there is a lot of boring petty crud going on at the HJ. I loved your comment about Parking Fine ... I got a good laugh out of it.
Post a Comment