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I don't know how to define 'high earning men' in real, but mathematically, earning up to 170K paying 24% tax is a fine spot, after that the tax becomes 32~35%,
by synergy20 4y ago
I don't know how to define 'high earning men' in real, but mathematically, earning up to 170K paying 24% tax is a fine spot, after that the tax becomes 32~35%, stretching yourself for decreasing return is not very exciting, why not taking a step back and enjoying life more instead.
- lupire 4y agoThat means nothing by itself. "Stretching yourself" might pay +10K, +50K, +300K, or even negative. I care about take home, not tax rate.
- TheCoelacanth 4y agoI don't think you have actually done the math on taxes if you think that. First off, the 32% bracket kicks in at 170k of taxable income, which is going to be at least 183k of actual income because of the standard deduction (probably higher because of itemized deductions). Second, the 6.2% social security tax stops at 160k of income, so your income in the 32% bracket is really only taxed at 1.8% more than most of your income in the 24% bracket.
- coffeebeqn 4y agoMinus 401k contributions and bad investments which could be another 25k off your income. And like too many people seem to not understand, your whole salary won’t be taxed at that rate - only the amount that goes over the limit