"Tax the Rich"

[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.

If you are married filing jointly, in 2025 you will pay $202,155 on income up to $751,601, for an effective federal income tax rate of less than 27%. Above that threshold, income is taxed at 37%. To get to an effective rate of 36%, your income would have to be well into the seven digits. For example, at $2m in *taxable* income, the effective federal income tax rate is 33.2%. And that's just taxable income, not taking into account the tax avoidance strategies available to the rich. And sure, I know one of you probably is a biglaw partner, so there are some extras thrown in there, but they are rounding errors at that level (although maybe not, since you only reference paying taxes in one state).

All this is by way of saying, (i) yes, billionaires should be taxed more, but (ii) no, your tax "burden" is not the least bit unfair, and really should be increased. FFS.

Also, your cute "we do well" was a nice try at making others assume you made $500k or so. But in reality, you are in the top 0.1% of HHI in the country, as is readily apparent to anyone who can do 5th grade math.

Finally, you are most definitely complaining. If you must, do it at the country club among your fellow travelers.

[Anonymous]

I call bullshit. At least we need more detail. I'm retired now, but when I was working was making just shy of $1 million in my peak earning years and my effective income tax rate was nowhere near 45 percent. And I live in DC.

The effective tax rate for a couple married filing jointly in DC with no dependents and taking the standard deduction is less than 30 percent for fed and DC combined.

[Anonymous]

Anonymous wrote:

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.

Let's see some evidence for these claims.

When Massachusetts enacted a "millionaire's tax" on the wealthy (4% surtax on income over a million dollars), lots of spoiled rich people threatened to leave. And probably some did. But it hasn't been the exodus that some thought it would be, and 2 years later, the revenue generated by the tax has been more than twice what had been expected. In the first year alone, $2.5 billion was collected.

TAX THE RICH. Make them squeal like the pigs they are.

https://www.wbur.org/news/2025/04/28/massachusetts-millionaires-tax-institute-policy-studies-newsletter

[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)

^^posting from Russia, just like many Xitter accounts.

[Anonymous]

Anonymous wrote:How do you end up at 36? It is either 35 or 37, I thought.

Plus, it is marginal.

So are you saying you are in a kuch higher tax bracket but ending up paying the marginal rate of 36%?

That is not bad at all. As PP noted, you have more than enough income to grow your wealth if you choose.

OP is talking about *effective* tax rate. So after applying the progressive brackets and looking at the real percentage of all income. They must make several million though to hit 36% effective rate for federal.

[Anonymous]

Your problem is that sounds like most of your income is w2. Also Virginia state tax is a lot lower. Majors a difference at higher income levels.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How do you end up at 36? It is either 35 or 37, I thought.

Plus, it is marginal.

So are you saying you are in a kuch higher tax bracket but ending up paying the marginal rate of 36%?

That is not bad at all. As PP noted, you have more than enough income to grow your wealth if you choose.

OP is talking about *effective* tax rate. So after applying the progressive brackets and looking at the real percentage of all income. They must make several million though to hit 36% effective rate for federal.

More than that as another poster calculated. OP is either a troll or doesn’t understand how taxation works.

[Anonymous]

Anonymous wrote:Your problem is that sounds like most of your income is w2. Also Virginia state tax is a lot lower. Majors a difference at higher income levels.

Right. Workers pay more than the idle rent-seeking capitalists.

[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.

oh baby- im sure your feel Ruch but no-one thinks you are rich. you get up and go to work every day.

No-one thinks that anyone whose net worth is below 100 million is rich

you are the working wealthy, wealthy is not rich and your taxes should be lowered! or they should go up 4% and then you get free quality healthcare, free quality universities and no concept of student loans and 20 year mortgage on your primary residence at a under 2% interest rate (what you'd get in Northern Europe) plus better roads, public transport and clean air and water and food not filled with microplastics. Oh and a pension.

[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.

Sure, but we also benefit from them. I'm okay with spreading the wealth this way, although I'd like to see those funds used to boost the safety net rather than line the pockets of the POTUS and his friends.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

Let's see some evidence for these claims.

When Massachusetts enacted a "millionaire's tax" on the wealthy (4% surtax on income over a million dollars), lots of spoiled rich people threatened to leave. And probably some did. But it hasn't been the exodus that some thought it would be, and 2 years later, the revenue generated by the tax has been more than twice what had been expected. In the first year alone, $2.5 billion was collected.

TAX THE RICH. Make them squeal like the pigs they are.

https://www.wbur.org/news/2025/04/28/massachusetts-millionaires-tax-institute-policy-studies-newsletter

I'm aware of what you're talking about re MA but these claims by progressives have been slapped down by fiscal watchdogs. Mainly because wealth grew at similar rates everywhere in the US in the same time span. It's called inflation. And mirrors the major gains in asset values and stock markets.

The pattern of high net worth reestablishing residencies in places like Florida is an old one and shows no signs of slowing down. It's easy, spend winters in Florida where the very wealthy are well catered for, and summers in New England or the Hamptons. At that threshold the tax savings are substantial.

[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.

If you are married filing jointly, in 2025 you will pay $202,155 on income up to $751,601, for an effective federal income tax rate of less than 27%. Above that threshold, income is taxed at 37%. To get to an effective rate of 36%, your income would have to be well into the seven digits. For example, at $2m in *taxable* income, the effective federal income tax rate is 33.2%. And that's just taxable income, not taking into account the tax avoidance strategies available to the rich. And sure, I know one of you probably is a biglaw partner, so there are some extras thrown in there, but they are rounding errors at that level (although maybe not, since you only reference paying taxes in one state).

All this is by way of saying, (i) yes, billionaires should be taxed more, but (ii) no, your tax "burden" is not the least bit unfair, and really should be increased. FFS.

Also, your cute "we do well" was a nice try at making others assume you made $500k or so. But in reality, you are in the top 0.1% of HHI in the country, as is readily apparent to anyone who can do 5th grade math.

Finally, you are most definitely complaining. If you must, do it at the country club among your fellow travelers.

This is the only post in the thread grounded in reality. THANK YOU for doing the math.

[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.

If you are married filing jointly, in 2025 you will pay $202,155 on income up to $751,601, for an effective federal income tax rate of less than 27%. Above that threshold, income is taxed at 37%. To get to an effective rate of 36%, your income would have to be well into the seven digits. For example, at $2m in *taxable* income, the effective federal income tax rate is 33.2%. And that's just taxable income, not taking into account the tax avoidance strategies available to the rich. And sure, I know one of you probably is a biglaw partner, so there are some extras thrown in there, but they are rounding errors at that level (although maybe not, since you only reference paying taxes in one state).

All this is by way of saying, (i) yes, billionaires should be taxed more, but (ii) no, your tax "burden" is not the least bit unfair, and really should be increased. FFS.

Also, your cute "we do well" was a nice try at making others assume you made $500k or so. But in reality, you are in the top 0.1% of HHI in the country, as is readily apparent to anyone who can do 5th grade math.

Finally, you are most definitely complaining. If you must, do it at the country club among your fellow travelers.

The mention of a C-Corp in OP’s post means that they are obfuscating the issue and aren’t comparable to regular wage earners.

[Anonymous]

I feel your pain. We don’t make that much by “rich standards”. But do fine. The amount of taxes we pay is absolutely crazy. 40 percent. I sold a property I owned for 10 years and paid almost 40 percent of profits in taxes. It is beyond crazy. I need to get smarter.

[Anonymous]

Anonymous wrote:

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.

I get paid for my “great arguments.” I’m not going to waste time typing them out here. You wouldn’t understand them anyway. PP