Barstool Economics

[outcaster]

Sniperchoke - 8/1/2010 5:29 PM

Bfish - 8/1/2010 12:00 PM

beetlespin - 7/31/2010 4:52 PM
Someone making $250k a year will pay more taxes that someone making 50k a year even makes. Its really BS.

Hmm, while that is true lets bump the numbers up just a hair, and compare the effective tax rate at 60k to 300k. In that case the 60k is paying a larger percentage of their income than the 300k. The spread gets even greater when you start considering all the write-offs that the 300k person can take advantage of.

I just checked the income tax rates from IRS.com a person making 300 k will pay somewhere in the neighborhood of 39% income tax rate and the person making 60k pays somewhere in the neighborhood of 18% tax rate. So I don't know where you are getting your #'s. In real dollars the individual making 300k will pay $117,472.50 in taxes the person making 60K will pay $11,194.00. Now who diserves a tax break? By the way you don't have to be rich to take advantage of a write off. As I have said before a paper boy can write off his vehicle, gas, mileage, repairs, etc, etc...

Now, factor in all the sales taxes licenses/fees, property taxes, fuel taxes, sin taxes and the numbers get a lot closer. btw the paperboy does not take advantage of stock options, muni bond payments, deferred compensation, and does not have the the funds necessary to buy political influence. Give me a friggin break!

 

[Bfish]

Sniperchoke - 8/1/2010 4:29 PM
....I just checked the income tax rates from IRS.com ......

I said effective tax rate

effective tax rate---Actual income tax paid divided by net taxable income before taxes, expressed as a percentage.

 

[Sniperchoke]

Bfish - 8/1/2010 4:56 PM

Sniperchoke - 8/1/2010 4:29 PM
....I just checked the income tax rates from IRS.com ......

I said effective tax rate

effective tax rate---Actual income tax paid divided by net taxable income before taxes, expressed as a percentage.

Its pretty black and white just go to irs.gov...

 

[Bfish]

Sniperchoke - 8/1/2010 5:35 PM
Its pretty black and white just go to irs.gov...

You're talking marginal rates not effective rates, I'll stand by my statement

 

[Sniperchoke]

Bfish - 8/1/2010 6:32 PM

Sniperchoke - 8/1/2010 5:35 PM
Its pretty black and white just go to irs.gov...

You're talking marginal rates not effective rates, I'll stand by my statement

Its going to vary from Individual depending on how much they give to charity, business deductions and so on. But it still doesn't change the income tax rates.

 

[Bfish]

Sniperchoke - 8/1/2010 6:47 PM
... But it still doesn't change the income tax rates.

True, but it does change their effective tax rate which is a measure (in percent) of what they paid. The higher income brackets have lower percentage of their money spent on taxes. To me it seems like, if there is a need to raise taxes at all, it should be raised on those that pay the lowest percentage of their income on taxes, rather than extending rebates and tax credits to those that pay in the least (percentage wise).

 

[outcaster]

Bfish - 8/1/2010 8:52 PM

Sniperchoke - 8/1/2010 6:47 PM
... But it still doesn't change the income tax rates.

True, but it does change their effective tax rate which is a measure (in percent) of what they paid. The higher income brackets have lower percentage of their money spent on taxes. To me it seems like, if there is a need to raise taxes at all, it should be raised on those that pay the lowest percentage of their income on taxes, rather than extending rebates and tax credits to those that pay in the least (percentage wise).

You're not gonna get anywhere with that argument in here. I've typed my little fingers off. They just don't get it, or think they are gonna be rich themselves one day.

 

[Sniperchoke]

outcaster - 8/1/2010 8:48 PM

Bfish - 8/1/2010 8:52 PM

Sniperchoke - 8/1/2010 6:47 PM
... But it still doesn't change the income tax rates.

True, but it does change their effective tax rate which is a measure (in percent) of what they paid. The higher income brackets have lower percentage of their money spent on taxes. To me it seems like, if there is a need to raise taxes at all, it should be raised on those that pay the lowest percentage of their income on taxes, rather than extending rebates and tax credits to those that pay in the least (percentage wise).

You're not gonna get anywhere with that argument in here. I've typed my little fingers off. They just don't get it, or think they are gonna be rich themselves one day.

We have a progressive income tax correct. I just find it hard to believe that you guys cannot fathom that. Even percentage wise the person that makes 300 K a year pays more than a person making 60 K a year unless he gives away 240 k to charity... And yes I understand about regressive sales taxes but I would bet the rent that the average person making 300 k a year pays more as a percent in taxes than a person making 60K. I am also the number 1 proponent of ridding our citizens of regressive taxes. I will never vote for a tax hike. Because once you give the gov't tax dollars those taxes never rescind.

 

[Bfish]

Sniperchoke - 8/1/2010 9:12 PM

We have a progressive income tax correct. I just find it hard to believe that you guys cannot fathom that. ..

Sort of. It is not a direct line graph, the curve flattens as you reach the higher income levels. So it is progressive to a certain level but then it almost levels off.

Additionally, for the lower income levels, they pay more in payroll tax (social security etc) than income tax. Payroll tax is highly regressive as it tops out at income of like 65k (anything over that is not taxed).

 

[Sniperchoke]

Bfish - 8/1/2010 11:01 PM

Sniperchoke - 8/1/2010 9:12 PM

We have a progressive income tax correct. I just find it hard to believe that you guys cannot fathom that. ..

Sort of. It is not a direct line graph, the curve flattens as you reach the higher income levels. So it is progressive to a certain level but then it almost levels off.

Additionally, for the lower income levels, they pay more in payroll tax (social security etc) than income tax. Payroll tax is highly regressive as it tops out at income of like 65k (anything over that is not taxed).

Using your words additionally if the person making 300K employed anyone they get to match 7.4% of the payroll taxes...