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A Tax Question

How much of the $251,000 is subject to the rate of 39.6?

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pbrauer

pbrauer

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The Bush tax cuts are scheduled to expire Dec 31, 2012 at midnight. President Obama has said he wants the top rate for wages to be 39.6% for everything starting at $250,000.


Lets say you have Taxable Income of $251,000 every year, so here's the question:


How much of the $251,000 is subject to the rate of 39.6?



  • The whole $251,000
  • Just $1000
  • I don't know
 
pbrauer said:
The Bush tax cuts are scheduled to expire Dec 31, 2012 at midnight. President Obama has said he wants the top rate for wages to be 39.6% for everything starting at $250,000.


Lets say you have Taxable Income of $251,000 every year, so here's the question:


How much of the $251,000 is subject to the rate of 39.6?



  • The whole $251,000
  • Just $1000
  • I don't know
Click to expand...

If that's the tax rate starting at $250,000, then that $1,000 would be taxed at 39.6%.
 
$1000 would be subject to the 39.6% rate but what's your point?
 
Am I Mitt Romney or somebody else? Little details matter......
 
A valid question. However, the starting point is at closer to $350K, not $250K assuming the Bush Tax Giveaway expires as is. The $250K level is a PROPOSAL by Obama, but is not actually the law.
 
Yup, as mentioned, you will pay that rate on 1K.

Same with any bracket jump.
 
Lutherf said:
$1000 would be subject to the 39.6% rate but what's your point?
Click to expand...

The point of my question was that not everybody understands what calculation is, follow this link:


pbrauer said:
Um, we have a marginal tax rate system. That means only the amount exceeding $250,000 will be taxed with the new rate. A person having a taxable income of $250,000 would not pay anything extra.
Click to expand...
 
Just 1000$ of it mainly because it's fair to those people who make just over the tax bracket.
 
pbrauer said:
The Bush tax cuts are scheduled to expire Dec 31, 2012 at midnight. President Obama has said he wants the top rate for wages to be 39.6% for everything starting at $250,000.


Lets say you have Taxable Income of $251,000 every year, so here's the question:


How much of the $251,000 is subject to the rate of 39.6?



  • The whole $251,000
  • Just $1000
  • I don't know
Click to expand...

Does it matter? The last $1,000 represents the same amount of business as the first $1,000.

Also, Obama is proposing that we bring it down from around 330k to 250k at the same time as raising the actual rate. So someone making 300k might very well see an additional $30k tax increase.

Besides, all of these tax questions are really just a dodge from the main issue, SPENDING. Further more... spending on social programs which has no increase in productivity, does not improve our industries, and does not create jobs. If we were spending like China on infrastructure and industry, I'd understand, but we are literally just sending people checks with absolutely no concern for real economic development, which would actually benefit those same people that much more in the long run.
 
Last edited:
ReformCollege said:
Does it matter? The last $1,000 represents the same amount of business as the first $1,000.

Also, Obama is proposing that we bring it down from around 330k to 250k at the same time as raising the actual rate. So someone making 300k might very well see an additional $30k tax increase.

Besides, all of these tax questions are really just a dodge from the main issue, SPENDING. Further more... spending on social programs which has no increase in productivity, does not improve our industries, and does not create jobs. If we were spending like China on infrastructure and industry, I'd understand, but we are literally just sending people checks with absolutely no concern for real economic development, which would actually benefit those same people that much more in the long run.
Click to expand...

That's absolutely right. In fact, when the top rate was 39.6% that rate didn't kick in until something over $300k which is the current equivalent of nearly $500k. This "fair" tax increase will actually be as oppressive as 70% rate was in 1981 adn if you can remember how our economy was back then....
 
pbrauer said:
The Bush tax cuts are scheduled to expire Dec 31, 2012 at midnight. President Obama has said he wants the top rate for wages to be 39.6% for everything starting at $250,000.


Lets say you have Taxable Income of $251,000 every year, so here's the question:


How much of the $251,000 is subject to the rate of 39.6?



  • The whole $251,000
  • Just $1000
  • I don't know
Click to expand...

D: None of it because I"m going to have deductions.

#effectivetaxratesarewhatmatter
 
pbrauer said:
The Bush tax cuts are scheduled to expire Dec 31, 2012 at midnight. President Obama has said he wants the top rate for wages to be 39.6% for everything starting at $250,000.


Lets say you have Taxable Income of $251,000 every year, so here's the question:


How much of the $251,000 is subject to the rate of 39.6?



  • The whole $251,000
  • Just $1000
  • I don't know
Click to expand...

Of course, you are talking taxable income of $250,000; which really means gross income likely of $270,000 to $320,000..
 
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