Posted by toddcommish on 9/29/2016 4:18:00 PM (view original):
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.

Add you to a list of dummies.

Posted by toddcommish on 9/29/2016 4:18:00 PM (view original):
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.

I think it's only every dollar over 75k that is 20%. You still make more money at 75k+.

Posted by MikeT23 on 9/29/2016 4:18:00 PM (view original):

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%?

No, current tiers, depending on filling status, go something like
0-9000
9000-40000
40000-90000
90000-180000
etc
at 413,000 the tier is only to 415,000, then it goes up again.

If you're claiming the wonderful idea of $0 - $74,999 has one tax rate, and $75,000 - $99,999 has another (mislabeled a "progressive" tax) is what you meant, that's fine.... but it's not what you said.

My point it would just make more sense to me to offer a day or two off to pay you $500 less. I could take that $500 and buy tax write-off items instead of paying you.

Posted by MikeT23 on 9/29/2016 4:21:00 PM (view original):

Posted by toddcommish on 9/29/2016 4:18:00 PM (view original):
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.

I think it's only every dollar over 75k that is 20%. You still make more money at 75k+.

If I fall in one bracket, I'll typically dig around for some extra deductions just to get into the lower bracket.

No need to pay more into a broken system if I don't have to...

Posted by toddcommish on 9/29/2016 4:23:00 PM (view original):
If you're claiming the wonderful idea of $0 - $74,999 has one tax rate, and $75,000 - $99,999 has another (mislabeled a "progressive" tax) is what you meant, that's fine.... but it's not what you said.

I think it was implied that we're talking about marginal rates.

Posted by toddcommish on 9/29/2016 4:24:00 PM (view original):

Posted by MikeT23 on 9/29/2016 4:21:00 PM (view original):

Posted by toddcommish on 9/29/2016 4:18:00 PM (view original):
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.

I think it's only every dollar over 75k that is 20%. You still make more money at 75k+.

If I fall in one bracket, I'll typically dig around for some extra deductions just to get into the lower bracket.

No need to pay more into a broken system if I don't have to...

You're digging around for those deductions no matter what.

Posted by bad_luck on 9/29/2016 4:21:00 PM (view original):

Posted by MikeT23 on 9/29/2016 4:18:00 PM (view original):

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%?

No, current tiers, depending on filling status, go something like
0-9000
9000-40000
40000-90000
90000-180000
etc
at 413,000 the tier is only to 415,000, then it goes up again.

OK, I'll grant you I've never made, or paid, 413k or 415k.

But you do recognize you have 31k, 50k and 90k differences in the rest, right? You're suggesting 35k or so between tiers. Or, if you're not, you damn sure didn't deny it when I said you were. So, if you'd like to change your story, go right ahead.

Posted by MikeT23 on 9/29/2016 4:23:00 PM (view original):
My point it would just make more sense to me to offer a day or two off to pay you $500 less. I could take that $500 and buy tax write-off items instead of paying you.

As a business owner, you're already paying your employees as little as possible.

I don't say that in a mean way, it's just rational. And if you aren't the kind of owner that squeezes hard, then you don't care what bracket your employees are in.

Posted by MikeT23 on 9/29/2016 4:26:00 PM (view original):

Posted by bad_luck on 9/29/2016 4:21:00 PM (view original):

Posted by MikeT23 on 9/29/2016 4:18:00 PM (view original):

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%?

No, current tiers, depending on filling status, go something like
0-9000
9000-40000
40000-90000
90000-180000
etc
at 413,000 the tier is only to 415,000, then it goes up again.

OK, I'll grant you I've never made, or paid, 413k or 415k.

But you do recognize you have 31k, 50k and 90k differences in the rest, right? You're suggesting 35k or so between tiers. Or, if you're not, you damn sure didn't deny it when I said you were. So, if you'd like to change your story, go right ahead.

Who cares if the difference between tiers is 20k or 30k or 50k?

Posted by bad_luck on 9/29/2016 4:28:00 PM (view original):

Posted by MikeT23 on 9/29/2016 4:23:00 PM (view original):
My point it would just make more sense to me to offer a day or two off to pay you $500 less. I could take that $500 and buy tax write-off items instead of paying you.

As a business owner, you're already paying your employees as little as possible.

I don't say that in a mean way, it's just rational. And if you aren't the kind of owner that squeezes hard, then you don't care what bracket your employees are in.

This will answer your last two. If I have more ,let's call them, "options" to pay them less with a different incentive, that's what I'm doing.

IOW, I'm offering something else, a day or two off perhaps, to keep that 40k at 39k, that 75k at 74k, that 110k at 109k, etc, etc. Because I can take that money and purchases items I can depreciate or write off.

It's not worth it at 40/90/180. Just pay them.

So your problem is where the tiers are? Ok. Put the tiers at 40k/100k/180k instead of 35k/75k/110k.

Problem solved.

Businesses look for a way to get the most bang for their buck. You obviously have to pay people but that's an expense that is "sunk". I buy a truck, it depreciates and makes me money at the same time. I buy a new computer or office supplies, it's a write-off. More tax tiers gives me more options to manipulate payroll and put money in different places.

Posted by bad_luck on 9/29/2016 4:41:00 PM (view original):
So your problem is where the tiers are? Ok. Put the tiers at 40k/100k/180k instead of 35k/75k/110k.

Problem solved.

Yeah, that's a big difference. A lot more people make 70k than 180k. Does it solve the problems you believe exist?