I made over 130K last year...

[RabidMongoose]

This is a very reasonable point.

That said, making 150 means that you pay the highest percentage of your income as taxes. This progressive leading to regressive tax system is unfair and should be turned into a progressive leading to flat tax.

Thanks for paying your taxes. I don't make no money, but I get more and more liberal the better educated I become.

I do earn over $150,000, but I would say that those people who earn that much also (typically) depend more on the frameworks that society gives us, IMO. So I think that someone such as myself uses society much more than someone who earns $25,000. Essentially, I'd say that a fast food worker relies less on societal frameworks than, say, a lawyer who is dependent upon the legal framework that society provides. In fact, I wouldn't have my current position without the legal frameworks that society provides. The same could be said for some types of engineers from industries that rely very heavily on ideas such as intellectual property.

I suppose I also fall under the "I get more and more liberal the better educated I become." I am not sure if I would have felt this way just a few years ago.

 

[etrigan420]

Really? It's made me more liberal.

Me too.

I've still managed to keep my income tax profile pretty low though.

On the other side of the coin, my daughter worked part time for Old Navy last year while going to school. I don't even remember what her earnings were, but she paid a grand total of $6.54 in withheld federal taxes.

 

[ShawnD1]

Really? It's made me more liberal.

I would be hardcore right wing if I made that much. All of the shit liberals want doesn't apply when you have cash

-You can afford day care, so government day care won't help you
-Seeing your doctor is not a huge hassle, so it's ok that all drugs require prescriptions and end up cost $100. Only poor people get fucked around by tight drug controls that mean skipping work then paying $50 for some stupid pain killer that should be OTC and $5 at Costco.
-Medical costs in general are not a big deal, so UHC would make your care worse by creating lines and shortages (see: Canada)
-You live in the upper class neighborhoods, so things like crime reduction (rehabilitation programs) don't concern you.

I would happily live in my big castle and tell the peasants to eat shit and die. That's my tax money. Get off my lawn before I release the immigrants on you (yes I keep an army of immigrants with swords instead of the classic guard dogs)

 

[rh71]

Just wait until you hit 150k combined household income, then you really don't get shit!

dis.

 

[DominionSeraph]

I would happily live in my big castle and tell the peasants to eat shit and die.

You think this because you are too stupid to be able to model the system dynamically. No job exists in a vacuum. If you happen to have a $150k/yr job that does not mean that that job has a reason to exist in all economic conditions and so is guaranteed for life at that wage.

US jobs tend to be tied very heavily to its internal economy. If consumer spending plummets you're not going to find very many sectors that are insulated from the fallout. (Contrast to a Colombian drug lord: If consumer spending in Colombia plummets, what does he care? He's not really relying on Colombians being able to buy his product)

A $150k/yr job in the US economy is not going to be insulated from its surroundings. If the economy collapsed and your 1% employer said, "Sorry ShawnD1, but we can only afford to pay you $20k," and there were no other jobs to be had, guess what? You ain't making $150k no more.

 

[vi edit]

Quote:
Originally Posted by Jeraden
Just wait until you hit 150k combined household income, then you really don't get shit!
dis.

Yep. That's me too. It blows. Unless I own a business or rent I'm screwed for credits/deductions. Can't claim or get credited for anything and I'm beyond the 150k mark enough that my Roth IRA is whittled down to almost nothing. Part of the reason I'm grumpy about my wife getting her 401k gimped.

 

[ShawnD1]

You think this because you are too stupid to be able to model the system dynamically. No job exists in a vacuum. If you happen to have a $150k/yr job that does not mean that that job has a reason to exist in all economic conditions and so is guaranteed for life at that wage.

lol you're such a dumb ass. People who make 150k per year typically do have that income for life because their job is that important. Executives at big companies can quit one job then start a new one a week later. A doctor can quit one place then go across the street to another.

A $150k/yr job in the US economy is not going to be insulated from its surroundings. If the economy collapsed and your 1% employer said, "Sorry ShawnD1, but we can only afford to pay you $20k," and there were no other jobs to be had, guess what? You ain't making $150k no more.

You should probably buy a history book. During recession, people with high incomes are the least affected. Layoffs hit the peasants first. If you're really really high up the food chain, you actually start to make more money during a recession because the dip in the market means you can buy things super cheap. Stock tanks, you buy it at 1/10 the normal cost, it goes back up in 10 years, you make 1000% profit.

 

[Dr. Zaus]

So shawn is wrong and right.

While the rich won't be out in the streets they have a much greater swing, as a group, in overall net-worth during times of recession.

 

[Nebor]

This is the first year I've owed taxes since I've been in the Army. I was shocked.

At least I won't have to pay any taxes next year.

 

[Elbryn]

Yep. That's me too. It blows. Unless I own a business or rent I'm screwed for credits/deductions. Can't claim or get credited for anything and I'm beyond the 150k mark enough that my Roth IRA is whittled down to almost nothing. Part of the reason I'm grumpy about my wife getting her 401k gimped.

maybe time to look for a job in state university? one here you get access to the pension system (10% salary fixed) and options to open a 403b and 457b for another 37k worth of retirement stuff. plus you have 5k in fsa and 5k in childcare fsa available. ~60k salary means hiding 53k of that salary in that manner, possibly more if you shift healthcare plan or whatnot over as well. theorycraft of course but you would certainly help push back into the realm of credits and deductions.

 

[IEC]

My deductions were almost phased out. It sucks

 

[DominionSeraph]

People who make 150k per year typically do have that income for life because their job is that important. Executives at big companies can quit one job then start a new one a week later. A doctor can quit one place then go across the street to another.

Ah yes, because middle-management is just sooooo important.

You're an idiot. If the economy isn't there to justify employing the actual laborers it isn't there to employ anyone else. And the middle-class has the least leverage to maintain their salaries in a slowdown -- any worker glut will start a bidding war and they have a lot of luxuries which they can give up to live under their new cap.

You should probably buy a history book. During recession, people with high incomes are the least affected. Layoffs hit the peasants first. If you're really really high up the food chain, you actually start to make more money during a recession because the dip in the market means you can buy things super cheap. Stock tanks, you buy it at 1/10 the normal cost, it goes back up in 10 years, you make 1000% profit.

You should try thinking when you read.
150k/yr at a job is not the same as being the in the 0.1% and owning the means of production. If you own the factories in a vital sector you will maintain most of your production, your income, and will be able to purchase a ton of the remainder of the assets which have been severely devalued especially given that any cash reserve you had now has more purchasing power. This doesn't mean that anyone IN those factories is living it up and joining the millionaire's club.
A $150k/yr wage slave is at the mercy of the economy.

 

[vi edit]

maybe time to look for a job in state university? one here you get access to the pension system (10% salary fixed) and options to open a 403b and 457b for another 37k worth of retirement stuff. plus you have 5k in fsa and 5k in childcare fsa available. ~60k salary means hiding 53k of that salary in that manner, possibly more if you shift healthcare plan or whatnot over as well. theorycraft of course but you would certainly help push back into the realm of credits and deductions.

Good thoughts, but not happening. I live a several hours from any major state uni system that would have the type of job that I do and my wife wouldn't come anywhere close to being compensated similar to what she makes now.

The childcare flex spending is another thing that she got hit with last year. Because she is "highly compensated" they gimped her $5,000 payroll childcare FSA deduction down to $3000. I had to take the other $2000 out of my paycheck after an appeal to my HR rep because of what they did to my wife.

This year I just sucked it up and put all $5,000 on my income. I also put 20% of my income 401k into my 401k, which isn't max, but with daycare bills I just don't want to go a lot higher. After the day care FSA, 401k, and taxes I walk away with like $1250 a check bi-weekly. Which seems like very little with a $60,000 income.

That's a little over 50% net.

 

[Doppel]

You're looking at like 30K in federal right?

How do you figure? Even if he's a single filer without deductions whatsoever and had to pay AMT for example, he'd be (130k-48k exemption)*.28 or .26 or whatever it is, so about $20-22k.

 

[spidey07]

How do you figure? Even if he's a single filer without deductions whatsoever and had to pay AMT for example, he'd be (130k-48k exemption)*.28 or .26 or whatever it is, so about $20-22k.

Federal income tax only. Remember nearly half the country pays no federal income tax.

 

[Doppel]

Federal income tax only. Remember nearly half the country pays no federal income tax.

I was answering halik about federal, though. The .26 multiplier is right at that income level, so $21k. This would be with no deductions, but chances are he's got a mortgage anyway, so pull another couple thousand off.

I can see how the numbers start to get a lot more serious when you're much into 6 digits, though. A family going from 100k to 130k may see only a 30% increase in income but could see almost a 100% increase in federal taxes.

 

[spidey07]

I was answering halik about federal, though. The .26 multiplier is right at that income level, so $21k. This would be with no deductions, but chances are he's got a mortgage anyway, so pull another couple thousand off.

I can see how the numbers start to get a lot more serious when you're much into 6 digits, though. A family going from 100k to 130k may see only a 30% increase in income but could see almost a 100% increase in federal taxes.

Yes. They'll be starting to hit phase outs on most deductions. Past 200/300 and you're fucked.

Marriage penalty starts really taking effect.

 

[alkemyst]

"We'd like you to come in and talk about your tax return"
"Happy to, just give me a letter of immunity; otherwise i'm pleading the fifth"
This works a little under 50% of the time because that's about how many cases of Audit are actually just the IRS fishing. If they have something then they won't ask you to come down, they will tell you you are legally required to show up.

"We require that you come down here"
"are you legally compelling me?"
"Yes, you are legally required to come here"
This is where you take your big-bag of receipts, documents, letters, expense reports and everything else down and lay it on the table.

When they see this they will realize that you've got your shit together and that getting money from you is going to be a headache.
"We think you owe an extra 10k"
"I don't owe any more, these are my documents."
"If we find an error we'll charge you penalties and interest much greater than the 10k"
"Everything is in order, I have no doubt"
: they look at the entire year worth of grocery receipts et al.:
"How about 2k and we make this go away"
at which point you pay the 2k and you get them to go away.

This is how you deal with the IRS; You may think there are laws, procedures, practices, rules etc. But the truth is that they are thugs with guns that get to re-interpret the rules: everything is ambiguous and everyone is subject to being screwed by these guys.

But they have to document screwing you; so know the rules, know that there's a guy on the other end of the table who doesn't want to go through a bag full of receipts and then negotiate.

I don't think you have been through an audit.

 

[Dr. Zaus]

I don't think you have been through an audit.

Of course not; I'm an academic, I have no concern for reality only theory. This is why I'm a communist.

 

[Engineer]

LOL...

He needs to make 100 times that to be close to being a 1%er : D


Wonder if he's going to pay a higher percentage tax than Mitt Romney?

In 2009, a 1%'er earned just over $343,000. Sounds like he needs to make 2.7 times to be a 1%'er.

 

[Engineer]

My wife can't max out her 401k. Her employer routinely fails the income tests that HR has to run to comply with some whacky ratio between employees. Heaven forbid a high income earner wants to fully contribute to their 401k's. :roll:

She has coworkers in her dept making similar incomes and if they start contributing more than 13k or so to their 401ks they get a check cut back to them that they have to account for as being untaxed when it comes the end of the year.

Again...more evil high income earners how dare they be responsible for their futures!

The above (bolded) kicked me in the nuts for about 3 straight years when I was still getting paid overtime. Didn't matter that I had worked up to 3,600 hours in one year to get to that level, only mattered that I was there.

 

[Doppel]

The above (bolded) kicked me in the nuts for about 3 straight years when I was still getting paid overtime. Didn't matter that I had worked up to 3,600 hours in one year to get to that level, only mattered that I was there.

3600 hours in a year, good Lord.

 

[Engineer]

3600 hours in a year, good Lord.

Yep. The last 6 weeks of the year (45 straight days), I averaged 106 hours per week. Basically, 15 hours average (as high as 20 in a single day) per day for 45 straight days. Damn near broke me (physically and especially mentally).

 

[bfdd]

stop paying your taxes and stop supporting the federal government. seriously. until everyone is paying the same rate taxation is wrong and unequal.

 

[Doppel]

stop paying your taxes and stop supporting the federal government. seriously. until everyone is paying the same rate taxation is wrong and unequal.

You first

I averaged 106 hours per week.

That is inhumane (actually it literally is, even Foxconn doesn't push their slaves that hard).