Taxes
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25-03-2017, 08:09 PM (This post was last modified: 25-03-2017 08:57 PM by Full Circle.)
Taxes
Here in the US the next Trumpdebacle will be reforming the tax code.

http://www.reuters.com/article/us-usa-co...SKBN16V2S0

I’d like to know what taxes look like in your country, are you content with how it’s set up, why or why not.

As for Americans same thing and if possible please cite sources, I like reading about this stuff.

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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25-03-2017, 08:25 PM
RE: Taxes
Here in the US this is how the government computes our Federal taxes.

https://www.irs.com/articles/2016-federa...deductions

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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25-03-2017, 08:49 PM (This post was last modified: 25-03-2017 08:57 PM by Full Circle.)
RE: Taxes
I spent part of the afternoon analyzing the current US Federal tax rates and how they affect different levels of income for a married couple filing jointly.

   

Bullet point findings based on a representative number of households, in this case 10,000

Top .01% (that is 1 household) avg. income $27,342,212, taxes paid/ea $10,773,180 Effective Tax rate 39.4%

Next 9 households (0.10%) avg. income $3,238,386, taxes paid/ea $1,228,065 ETR 37.9%

Next 40 households (0.50%) avg. income $878,139, taxes paid/ea $293,408 ETR 33.4%

Next 50 households (1.0%) avg. income $443,103, taxes paid/ea $122,231, ETR 27.6%

Next 400 households (5.0%) avg. income $211,476, taxes paid/ea $46,198, ETR 21.8%

Next 500 households (10.0%) avg. income $127,184, taxes paid/ea $23,338, ETR 18.3%

Next 9000 households (100%) avg. income $31,244, taxes paid/ea $3,759, ETR 12.0%

This equals to 10,000 households.
Total income $543,146,746
Total Taxes $103,653,909

Percent of total taxes paid by group:

Top 1 = 10.4%
Next 9 = 10.7%
Next 40 = 11.3%
Next 50 = 5.9%
Next 400 = 17.8%
Next 500 = 11.3%
Next 9000 = 32.6%

It’s definitely progressive but is it fair?
What do you think?

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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25-03-2017, 09:01 PM
RE: Taxes
If Trump's tax reform ends up looking like what he proposed during the run up to the election my net federal income tax rate is going to drop from 17.76% to 11.5% and save me about $6,700 a year. While that would be good for me in the short term I'm not sure how our government is going to deal with that kind of income drop over the long term.

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25-03-2017, 09:10 PM
RE: Taxes
(25-03-2017 08:49 PM)Full Circle Wrote:  It’s definitely progressive but is it fair?
What do you think?

Under the plan Trump proposed during the election your bottom 9000 households (assuming they are married couples) would pay nothing. Even the single filers would only average 2% or $624 in federal taxes each.

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25-03-2017, 09:13 PM (This post was last modified: 25-03-2017 09:23 PM by Popeye's Pappy.)
RE: Taxes
And no it isn't fair. Your top household earned 26% of the income and paid 10.4% of the taxes.

Sorry. I confused total taxes paid with with total income. the top household earned 5% of the income and paid 10% of the taxes. That doesn't sound fair, but they can afford easier than anyone below them can.

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25-03-2017, 10:32 PM
RE: Taxes
I reworked the tax brackets so that the total Federal Income Tax remained the same but the
bottom 9000 get a 21.9% reduction ($823)
next 500 get a 3.4% reduction ($792)
next 400 increase of 13.7% +$6,338
next 50 increase of 11.0% +$13,397
next 40 increase of 4.5% +$13,096
next 9 increase of 14.4% +$177,182
top 1 increase of 21.5% +$2,314,751

   

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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25-03-2017, 10:34 PM
RE: Taxes
Well if the healthcare debacle is anything to go on, hopefully he'll just get rid of the tax system and be unable to get a replacement through.
At least that way without the need to pay taxes you could afford to go to the doctor.
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25-03-2017, 10:37 PM (This post was last modified: 25-03-2017 10:43 PM by Full Circle.)
RE: Taxes
(25-03-2017 09:13 PM)Popeyes Pappy Wrote:  And no it isn't fair. Your top household earned 26% of the income and paid 10.4% of the taxes.

Sorry. I confused total taxes paid with with total income. the top household earned 5% of the income and paid 10% of the taxes. That doesn't sound fair, but they can afford easier than anyone below them can.

I’m trying to keep the total taxes paid into the Federal government the same, we already have problems with the dificit.

The numbers simply don’t work if the 9,000 don’t contribute.
If you look at the previous post you’ll see where currently the 9,000 pay about 1/3
with the reworked numbers they pay about 1/4 of all Fed taxes.

The problem I see is that there are too few people at the top levels to make up the difference.

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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25-03-2017, 10:50 PM
RE: Taxes
I made a small mistake on the previous chart, here is the corrected one.

   

I reworked the tax brackets so that the total Federal Income Tax remained the same but the
bottom 9000 get a 23.5% reduction ($885)
next 500 increase of 3.8% +$882
next 400 increase of 12.6% +$5,838
next 50 increase of 10.6% +$12,897
next 40 increase of 4.3% +$12,596
next 9 increase of 14.4% +$176,682
top 1 increase of 21.5% +$2,314,751

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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