Taxes

[Anonymous]

I have a friend who makes $86,000 a year. He has a SAHW and a grown son. He doesn't know what I make but knows it's more than what he makes.

I am confused and, truthfully, a bit angry that he thinks I should pay more federal, medicare and state taxes, as a percentage, than he does. I do not understand why progressive taxation would incentivize me - my spouse makes over $200,000 a year, so I don't have to work - to keep working outside the home. Why doesn't my friend, and other people in lower tax brackets, understand this and think 39% or more is a reasonable tax rate for families with HHI of over $250K a year?

[Anonymous]

He most likely pays a higher % of income in taxes then you do. Federal in progressive, the other taxes are not. Here is an example: Your ss tax is half of what he pays. ( you only pay ss taxes on the first 104k or there abouts. 6-7% or 10.4% for self employed. If u make 200k you pay 3/5%)

[Anonymous]

I definitely agree with the Social Security thing. Obama mentioned that in the 2008 election. I wish it would be changed to make everyone pay SS on all their income, including high earners.

Having said that, I have never in my life (not ever) met someone who stopped working, turned down a raise, or otherwise limited their potential salary because it would push them up into a higher tax bracket.

[Anonymous]

Even at that top MARGINAL rate of around 40%, the effective hourly rate of pay for those in that bracket is still plenty higher than that "poor" friend (I put that in quotes because I'm "poor" too, but live a perfectly fine life). And I don't know about OP, but many Republicans with the $200+ per hour pre-tax income, who think there is no incentive to work if you only get $120 of it after tax, complain about the laziness of those who get some help from the government to support their families on $8 or $10 per hour.

[Anonymous]

Yes I stopped working b/c I had to pay 3 cent more on every additional dollar I made(even though I do not pay the 6.7% ss tax on that additional dollar!). I am outraged! How dare you! Anyone know what time the moon comes up, I have to yell at it today.

[Anonymous]

Anonymous wrote:I definitely agree with the Social Security thing. Obama mentioned that in the 2008 election. I wish it would be changed to make everyone pay SS on all their income, including high earners.

Having said that, I have never in my life (not ever) met someone who stopped working, turned down a raise, or otherwise limited their potential salary because it would push them up into a higher tax bracket.

Do you make less than the amount of income at which SS taxes are capped?

[Anonymous]

Anonymous wrote:Even at that top MARGINAL rate of around 40%, the effective hourly rate of pay for those in that bracket is still plenty higher than that "poor" friend (I put that in quotes because I'm "poor" too, but live a perfectly fine life). And I don't know about OP, but many Republicans with the $200+ per hour pre-tax income, who think there is no incentive to work if you only get $120 of it after tax, complain about the laziness of those who get some help from the government to support their families on $8 or $10 per hour.

If our income goes down because of higher taxes, which it clearly will to pay for Obamacare at the very least, where you do think we'll cut our budget? I can tell you charitable contributions, which are about 8% of our budget, will be among the first to go. I'm not going to give up my housekeeper or private school if my taxes go up.

[Anonymous]

Anonymous wrote:I have a friend who makes $86,000 a year. He has a SAHW and a grown son. He doesn't know what I make but knows it's more than what he makes.

I am confused and, truthfully, a bit angry that he thinks I should pay more federal, medicare and state taxes, as a percentage, than he does. I do not understand why progressive taxation would incentivize me - my spouse makes over $200,000 a year, so I don't have to work - to keep working outside the home. Why doesn't my friend, and other people in lower tax brackets, understand this and think 39% or more is a reasonable tax rate for families with HHI of over $250K a year?

This is utterly stupid. Unless your tax rate is 100% or the expenses relating to work (childcare, commuting etc) exceed your net pay, you will always have more money than it your stayed at home

[Anonymous]

Anonymous wrote:Yes I stopped working b/c I had to pay 3 cent more on every additional dollar I made(even though I do not pay the 6.7% ss tax on that additional dollar!). I am outraged! How dare you! Anyone know what time the moon comes up, I have to yell at it today.

You know, since we have no debt, my time is worth a lot to me. At some point, additional taxes will cause me to say, eh, I'll just SAH.

[Anonymous]

Anonymous wrote:If our income goes down because of higher taxes, which it clearly will to pay for Obamacare at the very least, where you do think we'll cut our budget? I can tell you charitable contributions, which are about 8% of our budget, will be among the first to go. I'm not going to give up my housekeeper or private school if my taxes go up.

And if Romney is elected and eliminates (or caps) your tax deduction for charitable contributions, will you continue to donate 8%?

[Anonymous]

Anonymous wrote:

Anonymous wrote:If our income goes down because of higher taxes, which it clearly will to pay for Obamacare at the very least, where you do think we'll cut our budget? I can tell you charitable contributions, which are about 8% of our budget, will be among the first to go. I'm not going to give up my housekeeper or private school if my taxes go up.

And if Romney is elected and eliminates (or caps) your tax deduction for charitable contributions, will you continue to donate 8%?

Yes, I will.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have a friend who makes $86,000 a year. He has a SAHW and a grown son. He doesn't know what I make but knows it's more than what he makes.

I am confused and, truthfully, a bit angry that he thinks I should pay more federal, medicare and state taxes, as a percentage, than he does. I do not understand why progressive taxation would incentivize me - my spouse makes over $200,000 a year, so I don't have to work - to keep working outside the home. Why doesn't my friend, and other people in lower tax brackets, understand this and think 39% or more is a reasonable tax rate for families with HHI of over $250K a year?

This is utterly stupid. Unless your tax rate is 100% or the expenses relating to work (childcare, commuting etc) exceed your net pay, you will always have more money than it your stayed at home

But it's not just having more money, it is a matter of whether giving up my time, having more stress, etc., etc. is worth what I would net.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have a friend who makes $86,000 a year. He has a SAHW and a grown son. He doesn't know what I make but knows it's more than what he makes.

I am confused and, truthfully, a bit angry that he thinks I should pay more federal, medicare and state taxes, as a percentage, than he does. I do not understand why progressive taxation would incentivize me - my spouse makes over $200,000 a year, so I don't have to work - to keep working outside the home. Why doesn't my friend, and other people in lower tax brackets, understand this and think 39% or more is a reasonable tax rate for families with HHI of over $250K a year?

This is utterly stupid. Unless your tax rate is 100% or the expenses relating to work (childcare, commuting etc) exceed your net pay, you will always have more money than it your stayed at home

But it's not just having more money, it is a matter of whether giving up my time, having more stress, etc., etc. is worth what I would net.

Those are questions everyone asks when weighing whether to work or stay home, and taxes are generally not a significant factor.

[Anonymous]

Anonymous wrote:I have a friend who makes $86,000 a year. He has a SAHW and a grown son. He doesn't know what I make but knows it's more than what he makes.

I am confused and, truthfully, a bit angry that he thinks I should pay more federal, medicare and state taxes, as a percentage, than he does. I do not understand why progressive taxation would incentivize me - my spouse makes over $200,000 a year, so I don't have to work - to keep working outside the home. Why doesn't my friend, and other people in lower tax brackets, understand this and think 39% or more is a reasonable tax rate for families with HHI of over $250K a year?

Your tax rate is not going to be 39%, first of all. Your tax rate will probably not go up at all unless your husband makes well over $200K.

Second, Progressive taxation is an idea that even conservative economists like Milton Friedman endorsed. It is a near-universal notion, so getting angry at your neighbor for it is not worth your time. Almost EVERYBODY believes in it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes I stopped working b/c I had to pay 3 cent more on every additional dollar I made(even though I do not pay the 6.7% ss tax on that additional dollar!). I am outraged! How dare you! Anyone know what time the moon comes up, I have to yell at it today.

You know, since we have no debt, my time is worth a lot to me. At some point, additional taxes will cause me to say, eh, I'll just SAH.

At some point but if a few points causes you to say that, then you aren't really attached to the income. And the OP already stays at home, so taxes won't change her behavior.