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Its not an unrealistic marginal rate for NYC or perhaps even parts of California.[1] This is a case where 'average' is often misleading. When you take a salary.
by 001sky 13y ago
Its not an unrealistic marginal rate for NYC or perhaps even parts of California.[1] This is a case where 'average' is often misleading. When you take a salary...its a take it/leave it package (X net of tax). When you are self-employed, you are always deciding: do I do another X for another Y in return. At that stage, its all about marginal ROI from your time.
[1] Because of the real estate, many of these types of places are not really 'livable', and you see entry level jobs that offer salaries already at or neat the top tax brackets (despite the fact that these people have few/no assets or real 'net worth').
- davidw 13y agoNathan lives in Idaho, IIRC.
- 001sky 13y agoThere are several states without income taxes and/or sales taxes as well (NV, OR, TX, FL). Depending upon your income stream/sources and lifestyle this is hugely important. Once you retire...for example...you may spend more than you earn...or you may buy a car (that last 10 years). For other people, its real-estate (maintenance) taxes that are a function of asset-bases (often inflated, and not income). {etc}
- davidw 13y agoYes, Oregon has no sales tax. Whenever I go there (home), I always load up on stuff - the VAT here in Italy is 22%!
- kybernetyk 13y agoTechnically you would be required to pay the VAT on imported goods to the EU - even if they are considered duty free.
- dragonwriter 13y ago> Its not an unrealistic marginal rate for NYC or perhaps even parts of California. The claim was that personal income tax "in the US" was about 50%. That's very different than saying the truth which is that "maximum marginal income (including payroll) tax rates in the highest-tax US states are around 50%". > you see entry level jobs that offer salaries already at or neat the top tax brackets The top US federal marginal rate starts at $400,001 for a single filer; $450,001 for married filing jointly/qualified widow(er), $225,001 for married filing separately, and $425,001 for head of household. I've never seen anything fairly described as entry-level offering a salary at or near that, even in expensive places like SF.
- 001sky 13y agoFair enough, but by 'the top tax brackets' I meant those sufficient to trigger combined taxation approching 50%, eg, $90K in California? back of the envelope 28% $87,850 to $183,250 Federal Rate 15.30%* Social Security, self employed 8.8% State-Level taxes ======= ~ 52% Aggregate tax rate (excluding 9% sales tax average). This is not an average rate, nor does it include the provision of the healthcare mandate. In any event, this is meant to be illustrative only, and the marginal and average dynamics play out differently at higher rates (for a variety of reasons, including tax-sheltering and regressive taxes on payroll and sale/consumption taxes).
- stonemetal 13y agoNope. The federal Rate would be much lower. You would be in the 28% tax bracket but your tax rate wouldn't be 28%. [1] Grabbing a random tax calculator on line suggests that at 90K of gross income the highest your federal tax rate could be is about 16.6%. [1]http://www.calcxml.com/calculators/federal-income-tax-calculator http://www.calcxml.com/calculators/federal-income-tax-calcul...
- 001sky 13y agoWe can easily qualify the example to avoid using a black box...whether its 'taxable' income or 'marginal tax rate' etc. (which are actually implied). If you're saying something beyond this, then just say it.