5 ms·
I honestly doubt we can raise the marginal tax on income (even just income over $1M a year) to over 50%. Not in the foreseeable future at least as far as the US
by minot 11y ago
I honestly doubt we can raise the marginal tax on income (even just income over $1M a year) to over 50%. Not in the foreseeable future at least as far as the US is concerned.
- harryh 11y agoIt's already over 50% in CA (as well as various other places). 39.6% (Fed) + 12.3% (CA) = 51.9% There are city taxes as well in some places, for example add an additional 1.5% to that if you live in SF. Thinking about this, I suppose that the fact that you can deduct state taxes on your fed taxes brings this down a bit so maybe it does dip below 50? Not sure about the math. Real close though.
- gergles 11y agoThe deduction you can make on your federal taxes for state taxes paid vanishes once you're in AMT land which you almost certainly are if you're in the 39.6% tax bracket.
- harryh 11y agoIf you're paying the AMT the 39.6% doesn't apply. The top AMT rate is 28%. Whether you pay the AMT or not isn't really based on how much money you make. It's based on how many deductions not allowed under the AMT you take (deductibility of state taxes being the biggest one).