Are you "Upper Middle Class"?

[K-S-U-Wildcats!]

they generally pay the highest tax burden by percentage.

You keep repeating this, do you have a source?

And sorry about flying coach on your vacation bro. It's hard out there for a HENRY.

Sure. Start here for an intro. https://hbr.org/2010/09/tax-plight-of-250000-crowd.html

Then look at table 1 here: http://taxfoundation.org/article/summary-latest-federal-income-tax-data The 1-5% are the people the author is complaining about. I was wrong - they pay second highest tax percentage - the richest 1% do in fact pay more. Still, I don't get the authors beef.

And of course this is only looking at FIT, but there's too much state by state variability in other taxes for an apples to apples comparison.

Again though - I'm not complaining about my tax burden in this thread - I'm just wondering why the author thinks we're the problem.

[Dr Rick Daris]

k-s-u-Wildcats- how much money does your household make in a year and how many kids do you have?

[wetwillie]

Also what is your approximate age?

[Dr Rick Daris]

also, debt. how much debt do you have?

[michigancat]

they generally pay the highest tax burden by percentage.

You keep repeating this, do you have a source?

And sorry about flying coach on your vacation bro. It's hard out there for a HENRY.

Sure. Start here for an intro. https://hbr.org/2010/09/tax-plight-of-250000-crowd.html

Then look at table 1 here: http://taxfoundation.org/article/summary-latest-federal-income-tax-data The 1-5% are the people the author is complaining about. I was wrong - they pay second highest tax percentage - the richest 1% do in fact pay more. Still, I don't get the authors beef.

And of course this is only looking at FIT, but there's too much state by state variability in other taxes for an apples to apples comparison.

Again though - I'm not complaining about my tax burden in this thread - I'm just wondering why the author thinks we're the problem.

Maybe read the article again? I think it's pretty clear what his problem is. You may disagree, but you haven't really provided a good counterpoint. If anything, you've reinforced his arguments.

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

All of you shut up, you look like a bunch of idiots.

The federal income tax system is the least fair thing on earth. It's 1 page of tax rates and five thousand pages of exceptions aimed at very specific groups of people. It's a joke. It's like playing in a fantasy football league where the commissioner keeps "fixing" the rules to help his team, while 3 others guys collude to make a super roster.

[Fedor]

my tax rate (total, not marginal) is ridiculously low.  i almost lol @ the govt i'm raping it so bad.

Same w/ me,  I am always telling my bros,  "I don't know who pays all these taxes, but it sure isn't me."


Sent from my iPhone using Tapatalk

[K-S-U-Wildcats!]

k-s-u-Wildcats- how much money does your household make in a year and how many kids do you have?

AGI of around 190 (haven't done taxes yet), 4 kids, 37. Why do I care?

[Skipper44]

that can go quickly, especially if you are paying for daycare and/or private schools.  The $6k tax credit is a joke

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

that can go quickly, especially if you are paying for daycare and/or private schools.  The $6k tax credit is a joke

It's phases out insanely low, skipper

[michigancat]

that can go quickly, especially if you are paying for daycare and/or private schools.  The $6k tax credit is a joke

Yeah, living within your means really sucks

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

And by living within your means, he means making enough money to support your family and pay 40% of what you earn in taxes so some POS can spend his days drunk jerking off at the public library and absentee comfortably raise four kids.

What a deal

[wetwillie]

His marginal tax rate is like 28% with an effective likely far lower. 

And by living within your means, he means making enough money to support your family and pay 40% of what you earn in taxes so some POS can spend his days drunk jerking off at the public library and absentee comfortably raise four kids.

What a deal

40%?  Good lord, he isn't even remotely close to that.  The max he would pay is 28% if he was completely inept. 

[K-S-U-Wildcats!]

His marginal tax rate is like 28% with an effective likely far lower. 

And by living within your means, he means making enough money to support your family and pay 40% of what you earn in taxes so some POS can spend his days drunk jerking off at the public library and absentee comfortably raise four kids.

What a deal

40%?  Good lord, he isn't even remotely close to that.  The max he would pay is 28% if he was completely inept.

You're only talking FIT. I'll be around 40-45 by the time all the taxes add up.

[Dr Rick Daris]

k-s-u-Wildcats- how much money does your household make in a year and how many kids do you have?

AGI of around 190 (haven't done taxes yet), 4 kids, 37. Why do I care?

yikes. we are about the same age and unless you are a two income household, i can't imagine how you can't handle your finances without worrying about how much you are taxed. granted i have two less kids and my wife is a stay at home mom so we don't have to worry about childcare for four but still.

[michigancat]

His marginal tax rate is like 28% with an effective likely far lower. 

And by living within your means, he means making enough money to support your family and pay 40% of what you earn in taxes so some POS can spend his days drunk jerking off at the public library and absentee comfortably raise four kids.

What a deal

40%?  Good lord, he isn't even remotely close to that.  The max he would pay is 28% if he was completely inept.

You're only talking FIT. I'll be around 40-45 by the time all the taxes add up.

No you won't

[K-S-U-Wildcats!]

His marginal tax rate is like 28% with an effective likely far lower. 

And by living within your means, he means making enough money to support your family and pay 40% of what you earn in taxes so some POS can spend his days drunk jerking off at the public library and absentee comfortably raise four kids.

What a deal

40%?  Good lord, he isn't even remotely close to that.  The max he would pay is 28% if he was completely inept.

You're only talking FIT. I'll be around 40-45 by the time all the taxes add up.

No you won't

Yes I will. I was last year. FIT, KSIT, SS/MC, real and personal property, sales, household employer taxes. It all adds up.

[K-S-U-Wildcats!]

k-s-u-Wildcats- how much money does your household make in a year and how many kids do you have?

AGI of around 190 (haven't done taxes yet), 4 kids, 37. Why do I care?

yikes. we are about the same age and unless you are a two income household, i can't imagine how you can't handle your finances without worrying about how much you are taxed. granted i have two less kids and my wife is a stay at home mom so we don't have to worry about childcare for four but still.

First, I am handling my finances just fine. Second, we are a dual income household.

[Dr Rick Daris]

k-s-u-Wildcats- how much money does your household make in a year and how many kids do you have?

AGI of around 190 (haven't done taxes yet), 4 kids, 37. Why do I care?

yikes. we are about the same age and unless you are a two income household, i can't imagine how you can't handle your finances without worrying about how much you are taxed. granted i have two less kids and my wife is a stay at home mom so we don't have to worry about childcare for four but still.

First, I am handling my finances just fine. Second, we are a dual income household.

gotcha. figured it probably had to be a dual income household thing. with four kids, my advice would be to size down in terms or your house and transportation. don't feel like you have to compete with the joneses. it's tempting but honestly i think most people in your situation would be happier having less, but also not having to worry about money. also, consider having either your significant other or you stay at home if you can make it work. cut cable, get rid of morning starbucks, etc.

[michigancat]

His marginal tax rate is like 28% with an effective likely far lower. 

And by living within your means, he means making enough money to support your family and pay 40% of what you earn in taxes so some POS can spend his days drunk jerking off at the public library and absentee comfortably raise four kids.

What a deal

40%?  Good lord, he isn't even remotely close to that.  The max he would pay is 28% if he was completely inept.

You're only talking FIT. I'll be around 40-45 by the time all the taxes add up.

No you won't

Yes I will. I was last year. FIT, KSIT, SS/MC, real and personal property, sales, household employer taxes. It all adds up.

How did you make such a large jump from last year's effective rate claim?

My wife and I had a nasty surprise a few years back when we way under withheld. We thought claiming "married" and zero deductions would be sufficient. Wasn't even close. Evidently, the typical withholding formula doesn't work so well for relatively high earning dual income couples. So now we withhold extra in addition to no exemptions, and we get a lot back. I know it's stupid to not use a CPA to better ascertain how much to withhold, but it is nice getting a big chunk of change in the spring you're not counting on.

I would think a big chunk of change in the spring would be no big deal to a high earning couple like you and the Mrs K-S-U.

Our kids, mortgage, the crap ton of taxes we pay, and the student loans we took out to earn those salaries would disagree. We're HENRYs - right in the prime fleecing zone when it comes to taxes. Paid an effective federal rate of 15% and another 5% to the state. Add in FICA, real and personal property taxes, and I'm up to 32%. And that doesn't include sales tax.

[michigancat]

Rick, maybe his wife earns more and he could stay home with the kids.

[star seed 7]

Pretty sure ksuw has claimed as high as 60 percent before, but I don't want to search for it (lazy and stupid)

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

Well, with FICA and state income tax you're immediately at 13% (20% if SE). If you make $100k you're effective rate is at least 15%. Once you add property, sales, etc. tax it's not hard to get to 40%.

what's insane is that people think 20-30% is okay.

[06wildcat]

KSU, do your kids go to private school?

[michigancat]

Well, with FICA and state income tax you're immediately at 13% (20% if SE). If you make $100k you're effective rate is at least 15%. Once you add property, sales, etc. tax it's not hard to get to 40%.

It would be insanely irresponsible to spend enough on property tax and sales tax and have it equal 10-15% of your income.

I imagine it would be difficult too, mainly because you'd be spending too much on a house to afford enough sales tax and vice versa.