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It implies a near 50% tax rate, anywhere in the usa, even California, that seems really high.
by komali2 4y ago
It implies a near 50% tax rate, anywhere in the usa, even California, that seems really high.
- wongarsu 4y agoIf they use the money to fund retirement they potentially pay taxes twice: once on company profits, and once for the natural person who gets the money.
- db48x 4y agoAs an estimate, it will do the job. It’ll be wrong, but not horribly wrong, and if you had a windfall like that then planning based on a conservative estimate is a good idea. If you estimate your taxes high, then you get a pleasant surprise when your accountant actually crunches the numbers.
- mperham 4y agoIf you add up all of the jurisdictional taxes, 50% is typical for high earners. For instance I pay 38% fed and 10% state here in Oregon. Sketchy dudes will talk about various schemes to lower taxes but call it what it is: unethical tax avoidance. The real issue we should be talking about in the US is how poorly we use that tax income. Our built environment is absolutely dreadful because of our car dependency and we have little to no social benefits despite having massive tax income because our health care system is parasitic.
- bombcar 4y agoSketchy dudes talk about it but can't actually provide solid examples and numbers that don't involve things like "invest all your profits in a failed startup so that it's all a business expense". Look at the actual income tax paid by professional athletes; if anyone knew how to do it it would be them.
- AlwaysRock 4y agoHighest income tack bracket in the US is 37%. But it's different for corporations.