Why some people don't want a raise.

[fund razor]

US Federal Tax rates for 2009. If a prospective employer asked me if $83,000 was ok, I would say no... please give me 82,000. You get dinged 3% and $12,000 just by crossing the $82,250 line. This is part of the disincentive of working hard in this country.
Holy chit.... $372,951 becomes $134,201. It's expensive for people who actually produce anything to carry the weight of all those entitlement losers.
Screw liberals, socialists and people who want to tax us into complacency.

25% on the income between $33,950 and $82,250; plus $4,675

28% on the income between $82,250 and $171,550; plus $16,750

33% on the income between $171,550 and $372,950; plus $41,754

35% on the income over $372,950; plus $108,216

 

[fund razor]

Oh yeah... they want your inheritence too.
And a gift tax on anything over 12k per year.

 

[Dude! Sweet!]

Two words for you... "Shay's Rebellion"

 

[Wrinkleface]

:banghead:

 

[JupiterSunsation]

I'm no accountant but I believe the rates for 2009 have been the same for years. However in 2010 Bush's tax relief expires and the top bracket jumps back to 39.6 from 35%.

The rates really are for the first X of income so in your example the whole 83K doesn't get whacked the extra 3% just the part over 82. So if you make 100K, you pay 25% on the first 82K and 28% on the last 18K. I believe the rates are much less under 35K also.

Gift amounts are up to 13K for 2010. You can also give up to 1mm tax free in your lifetime but most people wait until they die for that one. But if you won 1mm and you wanted to give 10 people 100K each you could claim that one time exemption.

 

[Wobble]

Jupiter is spot on http://www.moneychimp.com/features/tax_brackets.htm


I believe the examples Fund used are the same ones used by fundraisers in order to persuade people to gift them selves back down to a lower tax bracket:sifone:

 

[JupiterSunsation]

Jupiter is spot on http://www.moneychimp.com/features/tax_brackets.htm

Don't tell OSD that.......:sifone:


nice site too!

 

[fund razor]

I'm no accountant but I believe the rates for 2009 have been the same for years. However in 2010 Bush's tax relief expires and the top bracket jumps back to 39.6 from 35%.

The rates really are for the first X of income so in your example the whole 83K doesn't get whacked the extra 3% just the part over 82. So if you make 100K, you pay 25% on the first 82K and 28% on the last 18K. I believe the rates are much less under 35K also.

Gift amounts are up to 13K for 2010. You can also give up to 1mm tax free in your lifetime but most people wait until they die for that one. But if you won 1mm and you wanted to give 10 people 100K each you could claim that one time exemption.

Thank God.

 

[Wobble]

Using the calculator your Salary of 372,500 would generate a tax of

Tax Year: 2009
Filing Status: Single
Taxable Income: $ 372,500


Federal Tax: $ 108,584
...as a percentage of income:28.03%
Tax Bracket: 35%

 

[fund razor]

Jupiter is spot on http://www.moneychimp.com/features/tax_brackets.htm


I believe the examples Fund used are the same ones used by fundraisers in order to persuade people to gift them selves back down to a lower tax bracket:sifone:

No. I was just considering a raise to $82,251.

 

[fund razor]

Screw liberals, socialists and people who want to tax us into complacency.

This part could be correct.

 

[Wobble]

This part could be correct.

No doubt:USA:

 

[JupiterSunsation]

For all of you lottery players (MMark!) you need to win and collect the money this year to avoid the 4.6% increase for 2010 and beyond for the highest bracket.

Tonight's powerball has a cash value of 48mm so you can keep 2.2mm more of the jackpot if you win and collect the money in 2009 vs. 2010.

 

[Davidmnc]

This part could be correct.

:iagree::iagree::iagree::iagree::iagree:

 

[phragle]

ok 48mm, divide by half for the cash payout 24 mm, divide that by 1/3 (twice state & fed) knock of another say 3% for local city tax.. ( 8mm + 8mm + 720000 = 16,720,000) you get roughly $7,280,000.. now that you have won big.. it's time to retire!! your 35.. means you have what 40 years left?? $182,000 a year.

 

[Wobble]

ok 48mm, divide by half for the cash payout 24 mm, divide that by 1/3 (twice state & fed) knock of another say 3% for local city tax.. ( 8mm + 8mm + 720000 = 16,720,000) you get roughly $7,280,000.. now that you have won big.. it's time to retire!! your 35.. means you have what 40 years left?? $182,000 a year.

I think I could make the nut on a pretty nice boat with that coin:sifone:

 

[JupiterSunsation]

ok 48mm, divide by half for the cash payout 24 mm, divide that by 1/3 (twice state & fed) knock of another say 3% for local city tax.. ( 8mm + 8mm + 720000 = 16,720,000) you get roughly $7,280,000.. now that you have won big.. it's time to retire!! your 35.. means you have what 40 years left?? $182,000 a year.

Actually no......tonight's jackpot is 96mm, cash value is 48.1mm.

No state or city tax in FL........48.1 @ 35% is about 32.5mm.
Spend 2.5 and bank 30

30 @ 3% tax free is 900K a year forever
30 @ 5% tax free is 1.5mm a year forvever

Your example of 35 with 7.3mm leaves out the most important factor..TVM (time value of money, compounding of principle and interest). I believe the fed/state taxes work on a concurrent scale as well, you pay fed tax on the amount left after the state tax already taken out.

 

[JupiterSunsation]

another glitch, if you win in NH, they just passed a law taking 10% of any gambling winnings over $600. Lawmakers argue if you win the lottery then you can afford to pay the 10%. Keep in mind NH has no state income tax but now they whack you 10% on lottery/gambling winnings only. This has to be the dumbest tax they have written into law!

 

[phragle]

I think I could make the nut on a pretty nice boat with that coin:sifone:

Just how much is a fully loaded 52SL with ac/heat Gen, hot water, tvs, pop-up flir, 2 gigawatt stereo and twin t-53's???

 

[boomer35]

No. I was just considering a raise to $82,251.

alright, i think im following this, are you saying buy getting a raise to 82,251 you would actually take home less?