Why do the tax brackets end at ~600k?

[Docscurlock]

Nothing liberal about it. Any basic Economics course or book will teach you that.

A sales tax is inherently regressive. A flat tax isn't, but given how many other taxes are regressive, you really need a progressive income tax to balance them out.

We already have that, at the top end people pay 37% of their income in taxes. That is 37 cents per every dollar they make, that is over 1/3 of their income. After that they pay state tax which varies, then sales tax on every thing they buy, tax on their phones, their cable bill, hotel rooms, airline tickets, gas in their cars, taxes on their cars (plates), the taxes never end. People that make good money already pay for everything, low income people pay almost no taxes already. It's a freakin circus we are living in and now they want to let the monkeys run everything.

Sponsored

 

[cib24]

Do you know how math works? These rates are worse for the average UK worker ($35,000/year) and the average US worker (($45,000/year) and just get worse from there. The only people it would be clearly better for is a high school kid working part time at McDonald's. Now I know why rich British celebrities all leave Britain as soon as possible.

I think you misread my post and need to check your comprehension. I'm in agreement with you. I thought I made it obvious that in the UK we are taxed at much higher rates than the US although the general benefits we have over the US are free healthcare, a few more free social services and far cheaper education. Otherwise, it is clear in the US that all of you take home more money after taxes than we do, and combine that with cheap gas of $3.50/gallon or whatever it is compared to our $7.00/gallon, and it's a lot less expensive to enjoy something like the Mustang in the United States.

Anyway, we are on the same page about taxes but generally I find it interesting that people are complaining about taxes in the States when most of you, especially those in States with no State tax or very limited State tax, have it so good.

 

[Docscurlock]

I think you misread my post and need to check your comprehension. I'm in agreement with you. I thought I made it obvious that in the UK we are taxed at much higher rates than the US although the general benefits we have over the US are free healthcare, a few more free social services and far cheaper education. Otherwise, it is clear in the US that all of you take home more money after taxes than we do, and combine that with cheap gas of $3.50/gallon or whatever it is compared to our $7.00/gallon, and it's a lot less expensive to enjoy something like the Mustang in the United States.

Anyway, we are on the same page about taxes but generally I find it interesting that people are complaining about taxes in the States when most of you, especially those in States with no State tax or very limited State tax, have it so good.

Most of the people complaining about taxes are those who pay very little and those who want the "rich" to pay more so they get more free crap that they don't deserve.

 

[Grintch]

Sorry, on the phone I don't get location data. I thought you were an American complaining about how easy the British had it because their rates started at zero and they had fewer brackets. Without noticing that all the tax brackets were higher except the bottom one.

Docsurlot - agreed we have a progressive income tax, just explaining why that was good for all the flat tax and sales tax only advocates.

cib24 - Nobody like taxes, no matter the rate. As long as people have to pay them, there will be complaints. Though higher rates are obviously worse. The no state income tax states just substitute other taxes for income taxes, so often are really no better that a state that has an income tax.

 

[LMS5400]

We already have that, at the top end people pay 37% of their income in taxes. That is 37 cents per every dollar they make, that is over 1/3 of their income. After that they pay state tax which varies, then sales tax on every thing they buy, tax on their phones, their cable bill, hotel rooms, airline tickets, gas in their cars, taxes on their cars (plates), the taxes never end. People that make good money already pay for everything, low income people pay almost no taxes already. It's a freakin circus we are living in and now they want to let the monkeys run everything.

I think you are missing the point. Why does someone that makes 600k have to pay the same taxes as someone that make 60,000,000 a year? There is no relative break between those two people. But Someone that makes 200k gets a little break over the 600k person. This tax system is most unfair to the upper middle class.

When it comes to the poor, I mean for starters, trying to support yourself or your family int he lower income bracket is next to impossible. this really hurts Hispanic and Native American minority women the most. I'm game for raising the min wage a bit but I also I think everyone should pay some taxes out of principal, but a progressive tax system helps offset quite a bit of the variables that make this country probably unfair for a lot of folks depending on where you are born and what opportunities you have and even your race and gender.

 

[LMS5400]

Well, being from or living in Berkeley is insulting so I do apologize for pointing out where you reside. Have a nice day trolling!

I'm sorry I offended you by being born in Berkeley. I lived in so-cal too for a long time. You're trying to stereotype me but you don't see we have a lot more in common than not. I'm trying to stay focused on tax brackets and you're making personal insults about my profile.. which for all you know. Could be fake.

 

[rick81721]

I think you are missing the point. Why does someone that makes 600k have to pay the same taxes as someone that make 60,000,000 a year? There is no relative break between those two people. But Someone that makes 200k gets a little break over the 600k person. This tax system is most unfair to the upper middle class.

When it comes to the poor, I mean for starters, trying to support yourself or your family int he lower income bracket is next to impossible. this really hurts Hispanic and Native American minority women the most. I'm game for raising the min wage a bit but I also I think everyone should pay some taxes out of principal, but a progressive tax system helps offset quite a bit of the variables that make this country probably unfair for a lot of folks depending on where you are born and what opportunities you have and even your race and gender.

Your math skills are abysmal - a person making $60,000,000 a year pays about 100 times more in taxes than someone making $600,000. Which is why the top earners pay such a disproportionately large percentage of the total income tax taken in by uncle sam. If you are referring to the tax rate, different story but so what? Really rich people (like Warren Buffett) make little regular income - most of their income comes from capital gains so they pay even less by percentage.

 

[Grintch]

Actually the rate is different too.

The 600k guy is only paying 37% on $1, so his effective rate is quite a bit lower, less than 32%.

But the 60M guy is paying the max 37% rate on most of his income, so is paying an effective rate very close to 37%.

 

[gixxersixxerman]

about my profile.. which for all you know. Could be fake.

About the only thing you said truthfully in all your posts on this forum

 

[Docscurlock]

I think you are missing the point. Why does someone that makes 600k have to pay the same taxes as someone that make 60,000,000 a year? There is no relative break between those two people. But Someone that makes 200k gets a little break over the 600k person. This tax system is most unfair to the upper middle class.

I am not missing any point, a person making $600000 a year at 37% pays $222,000 in federal (just federal) taxes, a person making $60,000,000 a year pays $22,200,000 in federal taxes. On what planet and with anything but common core math do they pay the same amount?

="[QUOTELMS5400, post: 2656276, member: 44353"]​

When it comes to the poor, I mean for starters, trying to support yourself or your family int he lower income bracket is next to impossible.[/QUOTE]
Been there done that, brother it ain't easy but it is possible

this really hurts Hispanic and Native American minority women the most.

Why does it always have to boil down to the race game every time. No one in 99% of America cares what color your skin is or who you sleep with, you are hired on your qualifications.

I'm game for raising the min wage a bit but I also I think everyone should pay some taxes out of principal, but a progressive tax system helps offset quite a bit of the variables that make this country probably unfair for a lot of folks depending on where you are born and what opportunities you have and even your race and gender.

We already have a progressive tax system it just tops out before it hits half of your wages for everyone. Wages are a product of your importance in the workplace, your qualifications and they type of job. Government interference only causes problems.

 

[LMS5400]

About the only thing you said truthfully in all your posts on this forum

Wait, what did I lie about? I'm just asking questions?

 

[LMS5400]

Why does it always have to boil down to the race game every time. No one in 99% of America cares what color your skin is or who you sleep with, you are hired on your qualifications.

Awe, now we are getting somewhere. This could not be further from the truth. Easy to say when you're a man, but we're off topic again, my fault.

 

[LMS5400]

The 600k guy is only paying 37% on $1, so his effective rate is quite a bit lower, less than 32%.

Correct, my example was not totally accurate as I was trying to make it palatable for us non-super-rich folks. As "600k" is not unreasonable to achieve. I'll do a more sound example.

Example 1

1. Dude A makes 100k
2. Dude B makes 200k (has to pay more % of tax compared to Dude A)

Example 2

• Dude A makes 100m
• Dude B makes 200m (pays a negligible amount more tax relative to income, effectively he is taxed like the dude A)

Why do we have a progressive tax system if we only apply it to some levels but not all?

What is the difference between a K and an M at the end of your annual income. This is a greatest con we have been buying into that the government is selling us. I do feel some progressive tax makes sense since many people live paycheck to paycheck for a lot of reasons outside their control, but the burden is squarely on the middle class relative to the ultra wealthy.

 

[HoosierDaddy]

Why does it always have to boil down to the race game every time. No one in 99% of America cares what color your skin is or who you sleep with, you are hired on your qualifications.

I see it exactly opposite, Yeah, who cares about skin color but 99% of people would NOT hire someone their SO is cheating with.

 

[Docscurlock]

I see it exactly opposite, Yeah, who cares about skin color but 99% of people would NOT hire someone their SO is cheating with.

I was referring to sexual orientation, if your SO is cheating with anyone you have bigger problems.

Sponsored