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>What do you think is a reasonable effective income tax rate? (Please do not confuse effective and nominal tax rates!) In my view: "All in" should be about 50-5
by thrwhizzle 5y ago
>What do you think is a reasonable effective income tax rate? (Please do not confuse effective and nominal tax rates!) In my view: "All in" should be about 50-55%. When I say "all in" I mean absolutely everything -- federal, state, local, national pension, national health (if applicable), yada yada yada.
Who is this for? The “rich” or for everyone else?
An effective rate of 50-55% is obscene. I would relocate for anything approaching 40%.
- onlyrealcuzzo 5y agoWhere do you live? In California - if you don't have a ton of mortgage interest deductions and you count state income tax - you're above 39.5% on $400k. If you count both sides of payroll tax, you're in the mid 40s. And even if you own a home, if you count property tax, you could be close to or above 50%. The median state income tax is about half of California's at $400k - and property taxes here are somewhat low. Most places - you're gonna be above 40%.
- thrwhizzle 5y agoCalifornia is bleeding citizens.
- throwaway2037 5y agoIf unclear, the "reasonable effective income tax rate" was for the top 1%. 1) Where do you live? 2) Are you in the top 1%? 3) In your location, what is the effective income tax rate for top 1%?
- thrwhizzle 5y agoTexas. That would depend on how you classify 1%. The effective tax rate for an individual earning $400k would be around 31%. Like I said, even approaching 40% is obscene. 50-55% is absolute thievery. I would relocate from Texas if my effective tax was even close to 40%.