Posted by bad_luck on 9/29/2016 3:43:00 PM (view original):
Ok, but what does that have to do with business owner manipulation?

Cutting off payroll at 39, 74, 109, etc, etc to avoid the next level of taxation.

Posted by MikeT23 on 9/29/2016 3:45:00 PM (view original):

Posted by bad_luck on 9/29/2016 3:43:00 PM (view original):
Ok, but what does that have to do with business owner manipulation?

Cutting off payroll at 39, 74, 109, etc, etc to avoid the next level of taxation.

Why would that matter? No employee would ask for $74k instead of $75k, even with a higher bracket at $75k.

Are you sure about that?

Posted by MikeT23 on 9/29/2016 3:48:00 PM (view original):
Are you sure about that?

Yes. But feel free to explain it to me like I'm four.

75k is about $1450 a week. Do you think a check for $1450 is the only way to receive value for your services?

Of course not. You might get healthcare or life insurance or one of several other benefits instead.

Just like now.

What does that have to do with tax brackets?

Or a week off, paid vacation, etc, etc. As in pay someone 74.5k and give them 5 personal days instead of 75k/3 personal days. There's no incentive if the tax rate changes at 250k. But, if there are multi-tier tax levels, it's a lot easier to create incentives to take 500 less a year.

And, if your argument is going to be "Yeah but you get 2 days less work from them", no one misses anyone for 2 days.

Posted by MikeT23 on 9/29/2016 3:59:00 PM (view original):
Or a week off, paid vacation, etc, etc. As in pay someone 74.5k and give them 5 personal days instead of 75k/3 personal days. There's no incentive if the tax rate changes at 250k. But, if there are multi-tier tax levels, it's a lot easier to create incentives to take 500 less a year.

And, if your argument is going to be "Yeah but you get 2 days less work from them", no one misses anyone for 2 days.

We have multiple tiers now. I'd guess that the vast majority of people, even business owners, don't know where they cut off.

I don't think what you're describing happens, but even if it does, I don't see it as a problem. Do you?

The tiers are higher and they aren't 35k apart. Do you think business owners use accountants? Do you think they know where they cut-off?

If we need money, via taxes, to run this country, every dollar counts. If the US collect less in taxes, do you think that's a problem?

But why would the business owner care what tier the employee is in? It doesn't impact the owner at all.

Posted by MikeT23 on 9/29/2016 4:08:00 PM (view original):
The tiers are higher and they aren't 35k apart. Do you think business owners use accountants? Do you think they know where they cut-off?

If we need money, via taxes, to run this country, every dollar counts. If the US collect less in taxes, do you think that's a problem?

What do you mean by "the tiers are higher?"

And some are 35k apart. Some are 2k apart. Some are 28k apart. Some are 100k apart.

I feel like we're going down a rabbit hole of crazy.

Posted by MikeT23 on 9/29/2016 4:08:00 PM (view original):
The tiers are higher and they aren't 35k apart. Do you think business owners use accountants? Do you think they know where they cut-off?

If we need money, via taxes, to run this country, every dollar counts. If the US collect less in taxes, do you think that's a problem?

And to answer your last question, there is hardly any difference in the taxes collected from someone making 74,500 and 75,000, even if the tax rate goes from 10% to 20% at 75k.

Posted by bad_luck on 9/29/2016 4:14:00 PM (view original):

Posted by MikeT23 on 9/29/2016 4:08:00 PM (view original):
The tiers are higher and they aren't 35k apart. Do you think business owners use accountants? Do you think they know where they cut-off?

If we need money, via taxes, to run this country, every dollar counts. If the US collect less in taxes, do you think that's a problem?

What do you mean by "the tiers are higher?"

And some are 35k apart. Some are 2k apart. Some are 28k apart. Some are 100k apart.

HUH?

Are you suggesting 100k might be 22%, 101k might be 23% and 102k might be 24%?

Net income at $74K and 10% tax rate = $66,600
Net income at $75K and 20% tax rate = $60,000

That is why you fail.