• TWeaK@lemm.ee
          link
          fedilink
          English
          arrow-up
          15
          ·
          edit-2
          1 year ago

          Fair point, but then it was Reagan who got rid of the 92% tax rate.

          “If I get taxed 92% on making my next movie, then I’m not going to make that movie, and all the rest of the movie workforce will be out of work.”

          No, you fucking dingbat, they’ll hire someone else instead and pay everyone else better, as they’ll save on your ridiculous pay packet.

            • MumboJumbo@lemmy.world
              link
              fedilink
              arrow-up
              4
              ·
              1 year ago

              I’ve heard that if you’re upset about something, then you should blame Reagan, because it was probably his fault.

              Really though, I just wanted to reply to say that I love your source 🤙

            • captainlezbian@lemmy.world
              link
              fedilink
              arrow-up
              4
              ·
              1 year ago

              Oh jeez 50 is too low, 38.5 is insane.

              If I have a 92% tax rate I only keep working because I want to, and that’s a good thing. It discourages me from trying to have all the money

              • jordanlund@lemmy.world
                link
                fedilink
                arrow-up
                1
                ·
                edit-2
                1 year ago

                If you think 38.5 is insane, have I got news for you!

                The current top US tax rate is 37%. ;)

                But the rates are also graduated… which is something most people do not understand.

                I’m going to use the “Married, Filing Jointly” numbers since that applies to my example:

                10% - $0 to $22,000
                12% - $22,001 to $89,450
                22% - $89,451 to $190,750
                24% - $190,751 to $364,200
                32% - $364,201 to $462,500
                35% - $462,501 to $693,750
                37% - $693,751 or more

                So you only get taxed at 37% if you make $693,751 or more. But that does NOT mean your tax liability is $256,687.87.

                You would pay 10% on the first $22K, 12% up to $89,450, 22% up to $190,750… and so on.

                If you make exactly $693,751 you are paying 37% on exactly 1 dollar of income, because the other $693,750 has already been taxed at lower rates.

                So for my wife and myself, we combined for $169,000 last year.

                10% - $0 to $22,000 - $2,200
                12% - $22,001 to $89,450 - $8,094
                22% - $89,451 to $190,750 - $17,501

                Our total tax liability was $27,795 out of $169,000 or 16.45%. Even though we’re in the 22% bracket, we only paid 22% on the income from $89,451 to $169,000.

                By the time you count in how much was with-held and how much our deductions were, we actually got a pretty nice refund last year.

                • captainlezbian@lemmy.world
                  link
                  fedilink
                  arrow-up
                  3
                  ·
                  1 year ago

                  Well yeah I’m a taxpayer. Someone wouldn’t criticize tax policy without understanding how their taxes work right?

                  And yeah I’m thinking in terms of the top bracket which should be set above comfortable upper middle class. At a certain point you have a ton of money, and if you’re trying to retire early using a huge income you can use a Roth IRA and have it taxed as you pull from it slower than you put in to it. These people aren’t paying their fair share and instead we borrow the money to make up for their failure to contribute