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Mathematical Question

I

imported_LoKe

Lifer
How much money would one have to win in order to get exactly $1,000,000 after the 15% tax? What would the formula be?

Just something I was thinking.
 
Originally posted by: ijester
All that does is give you 85% of a million. He wants to know what you would need to start with to end up with a million.
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Your logic (or lack thereof) just killed 10 kittens.

In the future, please think of the kittens.
 
Bigger question: where would that person need to live to get just a 15% tax on one million dollars of income?
 
Originally posted by: dullard
Bigger question: where would that person need to live to get just a 15% tax on one million dollars of income?
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I was thinking winnings, but I had my numbers wrong. Canada doesn't pay tax on winnings, and the us only pays what, 7%?
 
Originally posted by: LoKe
Originally posted by: dullard
Bigger question: where would that person need to live to get just a 15% tax on one million dollars of income?
Click to expand...

I was thinking winnings, but I had my numbers wrong. Canada doesn't pay tax on winnings, and the us only pays what, 7%?
Click to expand...

winnings from what? all short term "winnings" pays ordinary income

EDIT: you're in canada...i have no clue
 
Originally posted by: LoKe
I was thinking winnings, but I had my numbers wrong. Canada doesn't pay tax on winnings, and the us only pays what, 7%?
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In the US, almost all forms of money that you receive are considered income (there are a few exceptions such as dividends for some stupid reason, but that is a subject another thread). Thus winnings are income, and are taxed at the income tax rate. That would be 35% in the US for federal taxes and then add your state income taxes if your state collects them.

I don't know Canada's tax laws, which is why I asked the question where you'd have to live to get that low of a rate.
 
Originally posted by: dullard
Originally posted by: LoKe
I was thinking winnings, but I had my numbers wrong. Canada doesn't pay tax on winnings, and the us only pays what, 7%?
Click to expand...
In the US, almost all forms of money that you receive are considered income (there are a few exceptions such as dividends for some stupid reason, but that is a subject another thread). Thus winnings are income, and are taxed at the income tax rate. That would be 35% in the US for federal taxes and then add your state income taxes if your state collects them.

I don't know Canada's tax laws, which is why I asked the question where you'd have to live to get that low of a rate.
Click to expand...

So company of the shares you own makes money, pays corporate income tax at 35%, and then they pay a dividend to the shareholder and you pay income tax on something that's already been taxed. Does that make sense to you? If you live in California, that would make it a 60% tax from earned to in your pocket. (0.65*0.65 assuming you're at 25% federal)
 
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