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Advisor

Re: Higher taxes, lower incentive

Are you sure that your Fed income tax rates weren't higher in "64? Probably not some of the others, but I was thinking that this started out about Fed. income taxes. Some have been trying to drag in property and sales taxes etc. but that wasn't in the original question or accusation.

 

http://www.commondreams.org/view/2011/05/31-6

Advisor

Not so..says one of God's...

...right hand men. Bruce Bartlett, economc advisor to God himself:

 

http://economix.blogs.nytimes.com/2011/05/31/are-taxes-in-the-u-s-high-or-low/

Honored Advisor

Re: Higher taxes, lower incentive

Bruce, this is a `teachable moment`...pardon me, I always throw-up a little in my mouth everytime I use that Obama phrase.  See, in 1964 a dollar..a silver dollar was worth one dollar, today it`s worth about $35.  Someone making $100,000/yr  in 1964 would be the equivalent to making about $3.5 million/yr today. Also, they had crazy, 78% or whatever rates back then, but there were so many deductions that no one actually paid that rate. If you`re looking to stick it to the rich with those rates just remember there were rich people back then too. I wouldn`t be against higher federal income tax rates per se, the very important thing to note is we kept our national debt in check with those rates.  Today, with 1960`s tax rates we would still run $1.5 Trillion deficits..and squander the tax receipts on social programs that ..gasp! ...we somehow managed to do just fine without, back then. 

Honored Advisor

Re: your hedging again

Well Knapper, almost everthing you buy has a 6% sales tax, I think you guys even have a 2% tax on food.  When you buy gasoline there`s 20¢ Fed and 18¢ or so State tax per gallon.  So, you pay 8.55% Socail Security tax, huh?   Nope, sorry Knapper your employer picks up the other half, your cost of employment is more than you see.  The government knows how to hide alot of these taxes, if they didn`t the natives would get restless. 

Honored Advisor

Re: your hedging again

Are you a county supervisor, Ken?  In my county there were a few mentally challenged children, it cost the county over $1 million/yr to educate them, which is fine but it seemed to me to be kind of high priced and it goes right on property taxes.  Schools(teacher salaries) are paid mostly through property taxes 60% maybe as high as 80% ..right on the tax bill..don`t matter if you have kids or not... local schools don`t make the corn yield any better.  I know someone will argue the better educated kids will develop a superior seed corn..yada yada but that`s a stretch.  They just need to understand all the things property taxes fund and not squander that money. 

Veteran Advisor

Re: WHERE did i say i did ????

I'm not making up any tales.  You said you and everyone paid out over 50% of their income and then went to list income tax, sales tax, gas tax, etc to prove your point.  I figured the only way you could get that high of a number would be to add all of them together.

Veteran Advisor

Re: your hedging again

Are you talking "property" tax or "real estate" tax?  Illinois doesn't have a "property tax.  At least not where I lived.  I guess some counties or cities might but the state/county only has a real estate tax.  In North Carolina, when I lived there, there was a Property tax.  Everyone paid that and that supported the schools.  If you rented, you could have them appraise your belongings and tax that or you could list your monthly rent and they would multiply that by 6 and tax that.  I tried to get Rep. Phelps to consider that when he was in the state house because the way it was then and was up to 4 years ago was that people who only rented didn't have to pay any kind of tax to send their kids to school.

Veteran Advisor

Re: your hedging again

Most of mine is in the 10-15% and once in awhile a few thou might hit the 25% and my SS is only 7.5%

Senior Contributor

Re: your hedging again

the ssi tax is 15.2 how do you beat the gov out of the rest

Veteran Advisor

Re: your hedging again

Look it up bright boy and figure it our for yourself.  On second thought, you would never admit to finding it so here it is and I was wrong.  SS AND Medicare together are 7.65% and next year they will be 5.65%.  But thanks for paying all that extra money into SS.  Don and I are really grateful.

Employee

6.2% on earnings up to $106,800

4.2% on earnings up to $106,800

Employer6.2% on earnings up to $106,8006.2% on earnings up to $106,800
Self-employed 
*Can be offset by income tax provisions

12.4%* on earnings up to $106,800

10.4%* on earnings up to $106,800