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Pity the Poor Couple Who Make $450,000 Per Year

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101–102 of 102 posts

Re: Pity the Poor Couple Who Make $450,000 Per Year

#101
post #100

Earlier quoted context omitted.

That's funny, because on my federal tax return there's an entry where you deduct your state income tax. Sales tax, of course, is entirely different from income tax. http://www.irs.gov/publications/p17/ch22.html#en_US_publink1...

Something being deductible on federal is nowhere near the same as a tax credit. You don't get a tax credit for state/local taxes. You get a deduction (which doesn't apply under AMT). So, if you're in the 25% bracket, you can deduct your 10% state taxes, which reduces it from 25+10% to 25+10-(0.25*10). California's 9.3% is the top regular marginal income tax rate. There is also an 8-10% state/local sales tax. There is…

I know this, and am not trying to claim that high taxes don't exist - I live in California myself, and think we need to trim costs to become more competitive. But I see no value in exaggerating the impact of taxes either.

Call me a pedant if you like, but I'm just tired of seeing economic debates where people begin with best/worst case arguments, eg throwing out numbers which don't take inflation into account or suchlike. I felt the message I replied could have acknowledged that one number does not tell the whole story.

Re: Pity the Poor Couple Who Make $450,000 Per Year

#102
post #38

This is ridiculous. Any American (or Australian for that matter!) who whines about their taxes should come and work for a few years in Europe. In Belgium, on an entry-level salary (for a post-doc academic position) I was being taxed at over 50% (my communal tax was at 8%): "For 2010, marginal income tax starts at 25%, rises to 30% over EUR 7,900, 40% over EUR 11,240, 45% over 18,730 EUR with a top limit of 50% for in…

I live in Norway and only pay 33% of my salary in taxes. If I had bought a house instead of renting an apartment, I would have been able to deduct a lot more from my tax.
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