{ "media_type": "text", "post_content": "In a 50% marginal tax bracket. Feeling demotivated to chase any future raises. Government is going to take half anyways. Effort reward just isn't there anymore.", "post_id": "612da6721c289b002c6d1ca0", "reply_count": 423, "vote_count": 108, "bowl_id": "5e6fe1c31f5e51001d267e46", "bowl_name": "The Work-Life Bowl", "feed_type": "bowl" }
null

In a 50% marginal tax bracket. Feeling demotivated to chase any future raises. Government is going to take half anyways. Effort reward just isn't there anymore.

likefunnysmart
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Amazing that every response has completely missed the mark. The point here is that high tax rates are extremely demotivating to investment and work output. Productive people who are willing to get up at 6 am to go to work and then work their butts off should be entitled to retain the vast majority of what they earn. When 90% of new businesses fail, investors and entrepreneurs willing to put their money behind a new ideal need to richly benefit if they succeed. Otherwise those new businesses never get created and society misses out on new gods and services. No one disputes that some taxes are necessary for national defense, infrastructure, a basic social safety net, etc., but proposals to vastly increase taxes on the “rich” are completely misguided.

likefunnysmartuplifting

No, we got the point. You're just arrogant

likefunny

So, your whole post is flawed and you get no sympathy from me 🤷🏼‍♂️

Your marginal tax is “the rate you pay on any additional dollar of income”, and the 37% bracket starts at $518k for Single and $622k for MFJ. Most high net worth clients tend to be over 40 and married so I’ll just assume you are MFJ.

Now, those rates are based on taxable income, not gross income or adjusted gross income, but TAXABLE income. Because you are already complaining about high state and city tax rates, I’ll assume you live in NYC because CA doesn’t have local tax. You could be Ohio or Pennsylvania but I’m betting on good old NYC.

Assuming you are high net worth and married, you probably own a house and houses are expensive there, but you’re capped at $10,000 max for your property tax even though it’s closer to $30k so your pissy about that. You also aren’t getting credit for your high states taxes because also capped in the $10k deduction on Line 5….but good thing you’re paying a million dollar mortgage! You get all that interest, or most of it because you probably bought after TCJA and are capped at $750k, so now you’re also pissy about that. Either way I’ll put you down for $10,000 for taxes and $30,000 for mortgage, and I peg you for a “$500 to Goodwill for miscellaneous deductions”, which is really just $12 in old socks. You’re getting screwed by everyone so why donate to charity right? Since that’s what the government is for!

So you have approx $37,000 on Sch. A after the phase out which brings you up about $660k. BUT, you may a partner or self employed so you need to pay SE health and SE Tax, plus put a good $40k in your SEP so let’s add $40k + $18k for SE health if you’ve got some kids and $30k for SE tax, so that brings your gross income up to…..approx. $750k. Is that right? You are barely scraping by when gross income is $62,500 per month?

It’s not America’s fault that you have a big payment on a Tesla you had to have, you maxed out a mortgage with barely anything down, you live in just about the most expensive city in the country (I know San Francisco, I know. I’m not talking about you right now. I get it, you’re expensive too, but this guy is from New York so take a break), with just about the highest tax rates. You want a break? Move to TX. Move to WA. Move to FL. Do anything other than complain how unfair it is to you because you make $750k.

Pass.

likesmartuplifting

Plenty of non-Americans in NYC making big bucks.

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“Paying more taxes means you’ve made more money because that’s the only way you owe tax. Never feel bad for someone who owes tax.”—Grad school tax professor.

likeuplifting

Third world countries have never been anything but third world

.

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likefunny

My wife and I have the same problem…

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likefunny

So you make over 500k a year. Also, part of that you'll get back later in social security and Medicare. But yeah feel so bad that you have to pay slight more taxes

likefunny

I plan my own retirement without it - but more because who knows what privatization/individual “liberty”/“responsibility” ideas will take hold politically and at the end of the day people like me don’t “need” social security.

I just think it’s pretty obvious we can continue to fund support for the elderly. It’s all about political will. We could be doing so much more in this country.

like

I’m sorry you’re rich

likefunnysmart

Oh no!

Anyway

likefunnysmart

Doesn’t take an accountant to know your effective rate is well below 50%

likefunny

Which is why OP said marginal rate which applies to each additional taxable dollar. What’s your point?

likesmart

Upper Management: “We’d like to give you a 300k annual raise.”
Nobody: “No thanks. The government would take too much of it in taxes.”

likefunny

JPM1, seems you’ve never thought of the phrase,”We’re going to reward you for the work you’ve already done/been doing.”

I don’t necessarily buy the idea that you’re working disproportionately more for less money. Never been the case in my experience.

I can’t stand the politicians who think everything will be fixed by taxing the rich. They’re basically telling the masses their problems can be solved by raising *someone else’s* taxes. If people want nice things, then they should pay for them out of their own pocket rather than using the coercive powers of the government to take from someone else.

likefunny

BDD you’re actually missing a huge part of the government funding equation - borrowing. Who lends the government money to make up for the spending shortfall? Rich people that’s who. I don’t think food stamp recipients are buying T bonds.

like

*cries in poor* 🤧

likefunny

Taxation is theft and Rothbard was right.

likefunny

Lol good luck when your driveway hits a monopoly road when the street in front of you is privatized, sorry you lost the bid. Good luck backing your car out of the garage onto Comcast way, to head over to AT&T boulevard.

Don’t worry, I hear there is a bundle deal where you get all the local roads without daily fees, just a single 50% home equity deal with the oligarchy, then you and goods and services can reach your home again.

“Private my neighborhood roads please, and the one highway that exists when no others can be built due to existing development” is just the funniest desire. 10/10 political comedy.

likefunny

Cool

likefunny

I’d love to pay a million dollars in taxes…

likefunny

Hopefully OP is not a tax preparer.

likefunny

Clearly you don’t have an accountant. Your deductions take that down at least 20%. Poor people pay more than you no matter how important or how much of a victim you claim to be.

like

D3 Lol, I’m literally sitting in new associate training now. I also own several properties and work simply because I’d be bored out of my mind otherwise. Mind your business.

like

Spend some money and hire a good CPA

likefunny

maybe you should make your own coffee at home and stop eating avocado toast

likefunny

It's hard to feel particularly put out when the top 5% complain about taxes. First, if paying your fair fight demotivates you, quit. Do something that motivates you, pays a lot less but pays a lower tax rate. As for the supposed economic theory that the top 5% is what keeps the country going, 'supply-side' economics has been throughly tested by every Republican administration since Reagan, and failed to deliver each time. We are a demand driven economy, that requires vast numbers off people to spend money on food, clothing, shelter and entertainments - which means we need a really big middle class. Instead, we've steadily increase the wealth of the few and decreased the wealth of everyone else. No a prescription for long-term political-economic health.

like

Canadian here squarely in that 50% bracket. I also get free healthcare, my parents are taken care of in old age, and my kids will go to university for nearly free. It’s not perfect - I know there’s also all kinds of wasteful and stupid spending, but that’s just humans. I remind myself I’m still taking home more than most ppl for a job I’ve been doing in pajamas from the comfort of my home office for the past 18 months.

like

I did say *nearly* free. We do pay for university, but it’s not at all out of reach for most students. We essentially pay communty college tuition for a bachelor’s at a good university. And as for the comment about Canadian salaries being lower - you’d be surprised to see they are on par with US salaries. NYC and SF are higher, but so is cost of living.

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