Obama's brave new world of taxes.

[ERCougar]

So, in reflecting on Obama's crazy tax policy, I just realized that between the lifting of the SS tax cap (I'm sure there will not be an accompanying SS benefits raise) and the 6% income tax raise, he will be raising my marginal tax rate by nearly 20%.

So let's do the math...
Taxes 60%
Tithing 10%
Savings 20%

Leaving a whopping 10% to live on. Sure gets me excited about working.

[Archaea]

Originally Posted by ERCougar

So, in reflecting on Obama's crazy tax policy, I just realized that between the lifting of the SS tax cap (I'm sure there will not be an accompanying SS benefits raise) and the 6% income tax raise, he will be raising my marginal tax rate by nearly 20%.

So let's do the math...
Taxes 60%
Tithing 10%
Savings 20%

Leaving a whopping 10% to live on. Sure gets me excited about working.

If I could, which I can't, figure a way to leave and make a decent living, I'd be out of here. You've hit the nail on the head. It's going to be a f...ing nightmare.

[BarbaraGordon]

Originally Posted by ERCougar

So, in reflecting on Obama's crazy tax policy, I just realized that between the lifting of the SS tax cap (I'm sure there will not be an accompanying SS benefits raise) and the 6% income tax raise, he will be raising my marginal tax rate by nearly 20%.

So let's do the math...
Taxes 60%
Tithing 10%
Savings 20%

Leaving a whopping 10% to live on. Sure gets me excited about working.

Nobody's going to tax you at 60%, and I assume you're deliberately misusing the arithmetic for hyperbolic purposes.

I suppose we could just let the Republicans continue to devaluate our currency so that eventually none of us will be able to afford anything anymore. You think inflation's bad now...

[BarbaraGordon]

Originally Posted by Archaea

It's going to be a f...ing nightmare.

I can't wait for the victory party on election night. Kee hee. I'm so calling Archaea first. If he hasn't packed up and fled the country already.

[ERCougar]

Originally Posted by BarbaraGordon

Nobody's going to tax you at 60%, and I assume you're deliberately misusing the arithmetic for hyperbolic purposes.

I suppose we could just let the Republicans continue to devaluate our currency so that eventually none of us will be able to afford anything anymore. You think inflation's bad now...

Really?
How's this math?
Fed income tax = 39% (his proposed tax rate)
SS tax (and yes it's a tax, because there's been no talk of raising the benefit level as well) = 12.5%
Utah state income tax = 5% (obviously, this is variable, but Utah is on the low end)
Total = 56.5%

Any questions, class? Are you following me?

Or are you following the pied piper?

[BarbaraGordon]

Originally Posted by ERCougar

Or are you following the pied piper?

ooh. Them's fightin' words.

Sadly, I have to fly (and I do mean fly), so I can't fight this battle right now. But in the words of the mighty governator, "I'll be back."

[Cali Coug]

Originally Posted by ERCougar

Really?
How's this math?
Fed income tax = 39% (his proposed tax rate)
SS tax (and yes it's a tax, because there's been no talk of raising the benefit level as well) = 12.5%
Utah state income tax = 5% (obviously, this is variable, but Utah is on the low end)
Total = 56.5%

Any questions, class? Are you following me?

Or are you following the pied piper?

I would say your math sucks.

The social security "tax" only is in effect up to about $90,000. After that, you aren't paying anything into social security. The 39% is for the highest income bracket only, and taxes (according to Obama's plan) will be lowered for other income brackets. State and local taxes are tax deductible on your federal return too, so you aren't actually getting taxed at 5% extra at the state level.

And your "math" assumes no other tax deductions (including the 10% tithing you noted).

Any questions, class? Are you following me?

Or are you following the conservative talking point pied piper?

[Clark Addison]

Originally Posted by ERCougar

Really?
How's this math?
Fed income tax = 39% (his proposed tax rate)
SS tax (and yes it's a tax, because there's been no talk of raising the benefit level as well) = 12.5%
Utah state income tax = 5% (obviously, this is variable, but Utah is on the low end)
Total = 56.5%

Any questions, class? Are you following me?

Or are you following the pied piper?

No offense intended, but if you are going to act as condescending as this, you should probably try to make sure that your numbers aren't complete crap.

[Tex]

Originally Posted by Cali Coug

I would say your math sucks.
The social security "tax" only is in effect up to about $90,000. After that, you aren't paying anything into social security. The 39% is for the highest income bracket only, and taxes (according to Obama's plan) will be lowered for other income brackets. State and local taxes are tax deductible on your federal return too, so you aren't actually getting taxed at 5% extra at the state level.

And your "math" assumes no other tax deductions (including the 10% tithing you noted).

Any questions, class? Are you following me?

Or are you following the conservative talking point pied piper?

Assuming, of course, Obama doesn't raise the cap or remove it altogether.

[ERCougar]

Originally Posted by Cali Coug

I would say your math sucks.

The social security "tax" only is in effect up to about $90,000. After that, you aren't paying anything into social security. The 39% is for the highest income bracket only, and taxes (according to Obama's plan) will be lowered for other income brackets. State and local taxes are tax deductible on your federal return too, so you aren't actually getting taxed at 5% extra at the state level.

And your "math" assumes no other tax deductions (including the 10% tithing you noted).

Any questions, class? Are you following me?

Or are you following the conservative talking point pied piper?

Good point. So my state taxes will really be in the 3-4% range, and tithing will really only set me back about 7%. So I get to live on 15% of my income.
Goodie.

The focus of this really isn't the total--although it is somewhat alarming. What concerns me is the tax increase. You know very well that one of his major proposals is raising or eliminating the SS tax cap. From his website:

"Obama believes that the first place to look for ways to strengthen Social Security is the payroll tax system. Currently, the Social Security payroll tax applies to only the first $102,000 a worker makes. Obama supports increasing the maximum amount of earnings covered by Social Security and he will work with Congress and the American people to choose a payroll tax reform package that will keep Social Security solvent for at least the next half century."

(His latest proposal is the "donut": Leave the cap at 102K, but then reinstitute the 12.5% tax at all income above 250K. Why the hole in the middle? Well, obviously he needs those votes.)

At this point, his tax plan then amounts to a 6% increase in the income tax rate, plus a 12.5% increase in SS taxes. That's an 18.5% increase in taxes. At any other time, this kind of increase would be laughable; the fact that this is seriously being talked about is scary. I'm OK with tax increases--we have problems with funding SS, the debt, the war, expanded health care, etc. that will require us all to tighten our belts a little. I'm not OK with a 20% tax increase on some, while cutting taxes and increasing benefits for others.

It's funny you mention the conservative talking points. I first heard the discussion on the "donut" plan on NPR--hardly a stronghold of conservative talk radio. I've never been able to stand listening to Rush, Hannity, et al but this kind of tax proposal might swing me right over.