"Tax the Rich"

[Anonymous]

We do well. I am not complaining and feel very fortunate to have two very good paying careers. But we just did our end of year tax analysis with our CPA and our effective tax rate when adding federal plus DC taxes is 45% (36% federal, 9% DC and DC is only "low" because a lot of our income is through a DC C-Corp which is taxes slightly lower at 8.5%).

45% of our income going to taxes. Nearly half of what we take home. And yes -- we are utilizing every single tax strategy under the sun available to us and work with a very good CPA.

So let's change the complaint from "tax the rich" to "tax the billionaires" because the regular rich are playing PLENTY in taxes already. Sigh.

[Anonymous]

We aren't even rich but yes we pay 40% state and federal.
If the cap were removed from social security that would go a long way.

[Anonymous]

Anonymous wrote:We do well. I am not complaining and feel very fortunate to have two very good paying careers. But we just did our end of year tax analysis with our CPA and our effective tax rate when adding federal plus DC taxes is 45% (36% federal, 9% DC and DC is only "low" because a lot of our income is through a DC C-Corp which is taxes slightly lower at 8.5%).

45% of our income going to taxes. Nearly half of what we take home. And yes -- we are utilizing every single tax strategy under the sun available to us and work with a very good CPA.

So let's change the complaint from "tax the rich" to "tax the billionaires" because the regular rich are playing PLENTY in taxes already. Sigh.

I'm curious OP. Sounds like you and your partner make over $500k. Why not move to VA and save some money?

[Anonymous]

Anonymous wrote:We do well. I am not complaining and feel very fortunate to have two very good paying careers. But we just did our end of year tax analysis with our CPA and our effective tax rate when adding federal plus DC taxes is 45% (36% federal, 9% DC and DC is only "low" because a lot of our income is through a DC C-Corp which is taxes slightly lower at 8.5%).

45% of our income going to taxes. Nearly half of what we take home. And yes -- we are utilizing every single tax strategy under the sun available to us and work with a very good CPA.

So let's change the complaint from "tax the rich" to "tax the billionaires" because the regular rich are playing PLENTY in taxes already. Sigh.

1. Don't live in DC.
2. Nope.

-- someone who works in tax policy

[Anonymous]

Anonymous wrote:

Anonymous wrote:We do well. I am not complaining and feel very fortunate to have two very good paying careers. But we just did our end of year tax analysis with our CPA and our effective tax rate when adding federal plus DC taxes is 45% (36% federal, 9% DC and DC is only "low" because a lot of our income is through a DC C-Corp which is taxes slightly lower at 8.5%).

45% of our income going to taxes. Nearly half of what we take home. And yes -- we are utilizing every single tax strategy under the sun available to us and work with a very good CPA.

So let's change the complaint from "tax the rich" to "tax the billionaires" because the regular rich are playing PLENTY in taxes already. Sigh.

1. Don't live in DC.
2. Nope.

-- someone who works in tax policy

“Nope”?

Great, glad our tax policy folks have such great arguments as to why people should be giving away half their income in taxes. I feel a lot better now.

[Anonymous]

We are in the same situation. We live in Rockville so we pay taxes for Rockville, Montgomery County, Maryland, as well as the federal government.

I think the thing is the billionaires need to be taxed. And not have all those loop poles. It would not make one difference in their lifestyle to increase their taxes and it would make such a difference to America's budget.

[Anonymous]

Anonymous wrote:We are in the same situation. We live in Rockville so we pay taxes for Rockville, Montgomery County, Maryland, as well as the federal government.

I think the thing is the billionaires need to be taxed. And not have all those loop poles. It would not make one difference in their lifestyle to increase their taxes and it would make such a difference to America's budget.

You also pay MD state income taxes, don't forget those. Those are particularly annoying because there are few tax-efficient strategies at the state level.

As for billionaires, a lot of their money is in wealth not income, and our tax system is based on income.

They also happen to be highly mobile, so they will move to better tax jurisdictions. Higher taxesin MD and MoCo have caused the wealthy to leave and decimate the tax base:
https://montgomeryperspective.com/2025/04/11/marylands-wealth-drain-part-six/

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are in the same situation. We live in Rockville so we pay taxes for Rockville, Montgomery County, Maryland, as well as the federal government.

I think the thing is the billionaires need to be taxed. And not have all those loop poles. It would not make one difference in their lifestyle to increase their taxes and it would make such a difference to America's budget.

You also pay MD state income taxes, don't forget those. Those are particularly annoying because there are few tax-efficient strategies at the state level.

As for billionaires, a lot of their money is in wealth not income, and our tax system is based on income.

They also happen to be highly mobile, so they will move to better tax jurisdictions. Higher taxesin MD and MoCo have caused the wealthy to leave and decimate the tax base:
https://montgomeryperspective.com/2025/04/11/marylands-wealth-drain-part-six/

Buh-bye! Don't let the door hit you in the way out.

[Anonymous]

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are in the same situation. We live in Rockville so we pay taxes for Rockville, Montgomery County, Maryland, as well as the federal government.

I think the thing is the billionaires need to be taxed. And not have all those loop poles. It would not make one difference in their lifestyle to increase their taxes and it would make such a difference to America's budget.

You also pay MD state income taxes, don't forget those. Those are particularly annoying because there are few tax-efficient strategies at the state level.

As for billionaires, a lot of their money is in wealth not income, and our tax system is based on income.

They also happen to be highly mobile, so they will move to better tax jurisdictions. Higher taxesin MD and MoCo have caused the wealthy to leave and decimate the tax base:
https://montgomeryperspective.com/2025/04/11/marylands-wealth-drain-part-six/

Buh-bye! Don't let the door hit you in the way out.

That attitude is exactly why many of the wealthy left.. and the result is putting more of the tax burden on everyone else.

It's why everyone in MD now pays about double what they used to in car registration fees, and emissions testing fees, and why people in MoCo have to pay for parking garages on Saturdays, for example. It's also why everyone in MD now pays a 3% "digital services tax" on their Netflix subscription, for example.

[Anonymous]

I think the maximum any individual or corporation should pay is 50% of their income. It does not seem fair for contributions to society to extend beyond that.

If governments want more money, then they should make their tax collection services a LOT more robust! There aren't nearly enough auditors and enforcers. An (admittedly old) study on the IRS found that for every dollar spent reinforcing this agency, it could get 8 dollars back in taxes, without changing any tax laws. It would truly be a great help, even if were less than that.

Also, tax agencies around the world could close their tax loopholes and rake in more money that way as well.

But I agree with you, OP, that 45% is a lot, especially considering that some people are defrauding society by exploiting loopholes and some aren't paying their dues at all.

And before someone mentions immigrants, most foreigners in the US, even most of the improperly documented, pay their taxes.

[Anonymous]

I honestly think the tax code should be significantly less progressive than it is. The vast majority of people in this country pay almost no federal taxes at all. They have no skin in the game! They literally could not care less if the pentagon wastes trillions or we fund stupid unnecessary projects.

I've love to see a flat tax on ALL americans and on ALL incomce (including capital gains and dividends)

[Anonymous]

Anonymous wrote:We do well. I am not complaining and feel very fortunate to have two very good paying careers. But we just did our end of year tax analysis with our CPA and our effective tax rate when adding federal plus DC taxes is 45% (36% federal, 9% DC and DC is only "low" because a lot of our income is through a DC C-Corp which is taxes slightly lower at 8.5%).

45% of our income going to taxes. Nearly half of what we take home. And yes -- we are utilizing every single tax strategy under the sun available to us and work with a very good CPA.

So let's change the complaint from "tax the rich" to "tax the billionaires" because the regular rich are playing PLENTY in taxes already. Sigh.

no comrade. You must pay your fair share and that's at least 75% of your income.

[Anonymous]

Anonymous wrote:I honestly think the tax code should be significantly less progressive than it is. The vast majority of people in this country pay almost no federal taxes at all. They have no skin in the game! They literally could not care less if the pentagon wastes trillions or we fund stupid unnecessary projects.

I've love to see a flat tax on ALL americans and on ALL incomce (including capital gains and dividends)

Some countries have done that and it works well. The problem here is:
1. The CPAs and tax software companies would all complain because they are no longer needed.
2. Congress likes to legislate behavior through the tax code. That's why we see tax breaks for getting married, having kids, donating to charity, saving money for college (529), etc. I doubt they'll want to give that up.

Many years ago, Russia lowered the income tax rate and made it simpler. Tax revenues went UP. The reason is that so many people were dodging taxes when the rates were high, but they figured at a more reasonable rate, they might as well pay up and not have to always be looking over their shoulder.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We do well. I am not complaining and feel very fortunate to have two very good paying careers. But we just did our end of year tax analysis with our CPA and our effective tax rate when adding federal plus DC taxes is 45% (36% federal, 9% DC and DC is only "low" because a lot of our income is through a DC C-Corp which is taxes slightly lower at 8.5%).

45% of our income going to taxes. Nearly half of what we take home. And yes -- we are utilizing every single tax strategy under the sun available to us and work with a very good CPA.

So let's change the complaint from "tax the rich" to "tax the billionaires" because the regular rich are playing PLENTY in taxes already. Sigh.

I'm curious OP. Sounds like you and your partner make over $500k. Why not move to VA and save some money?

You don’t really end up saving all that much by moving to VA once you account for county, state, and property taxes. Maybe 1%? And for a lot of people that’s just not worth it.