Reply to Harris tax plan - raising taxes on high earners

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Their idea of high earners isn't location specific (COL is vastly diff in diff locations) or adjusted for inflation or considers 1 income households vs 2 income households (childcare exp. etc).  It's simply stupid to consider 2 income household in a VHCOL area earning 400K to be "rich" or high earner anything.  Likewise their poverty line is absolutely ridiculous and out of touch.  I have no issue with slamming more brackets at HHI over 1 mil or taxing capital gains beyond a certain amount (like 1 mil in passive capital gains) at higher rate. But their limits on what they consider any type of "wealth" or excess are absolutely ridiculous. [/quote]

[b]It’s $400k in taxable income.[/b] So probably $600k or so in actual income. That is a high earner even in a VHCOL area. [/quote]

+1. People seem to really struggle with this concept.
[/quote]

Tell me what deductions people can create to reduce 600K earned income to 400K? [/quote]

It's not just about reducing *current* taxable income.  High earners can also reduce future taxable income by using things like the mega backdoor Roth - this allows any you to put $69K per year into a Roth (or $76.5K if over 50).  And this is on top of a regular backdoor Roth ($7K per year limit, or $8K if above age 50).  This means two high-earners can put an astounding $152K per year into Roth IRAs (or $169K if above age 50).

You don't have to do that for too long before you can retire, and then the government would never get another dollar in taxes from you.  So it's not just about reducing current taxable income.[/quote]

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