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From the original article: >Schatsky said that the incentive to get under $250,000 may be more so if the tax plan outlines that an individual who goes over a p
by Macavity 18y ago
From the original article:
>Schatsky said that the incentive to get under $250,000 may be more so if the tax plan outlines that an individual who goes over a prescribed limit would face a reduced value of their itemized deductions.
>"If the value of all your itemized deductions goes from a 33 percent level to a 28 percent level than there would be a reason for people to do dramatic things to reduce their incomes," said Schatsky.
This is coming from "Gary Schatsky, a financial adviser and the president of N.Y.-based Objectiveadvice.com". As such, he presumably has a clue about taxation matters, so I hesitate to call him out on this, but... surely no government would ever enact such a scheme; they would bracket the deductions in a similar way to the income, rather than having a magic barrier of $250k, in order to avoid a situation where people have an incentive to earn less. To me this seems common sense, but at the same time, I'm not a financial adviser -- does anyone have any input on this?
- russell 18y ago"surely no government would ever enact such a scheme" The UK actually had a 105% tax bracket back in the middle of the 20th century. Governments implement no end of stupid ideas. I suppose there are marginal cases where your deductions at $250,001 are smaller than at $249,999, but I suspect the number needing drastic action are very few. That's why those better off than us hire accountants: to hide money under different rocks from last year.
- ams6110 18y ago> surely no government would ever enact such a scheme Heh. I would not put ANYTHING into the "surely they wouldn't" category when it comes to government....
- davidw 18y agoGovernment? Try humans in general. Get a large enough sample, and there will be a portion of idiots. Sometimes they're even in charge, be it in a company or a government. Or they might not be in charge, but their actions will negatively affect other people in any case.