The "Equality" Fallacy

[Uncensored2008]

Being ground into the dirt...

Suppose they say they are going to raise taxes on incomes above $250K. People seem to think that this means if you earn $250K plus a dollar, that you owe an additional tax on the entire $250K. This is not correct. I actually hear stories about people who give away money, and do other things to avoid going "into a higher bracket" because they think they have to pay additional taxes on their entire earnings.

I doubt it. Pretty much everyone knows how progressive taxation works.

But you touch on two important issues;

First, taxation is done by brackets, so a person making $249,000 will see less take home with a raise to $251,000 - as he is punished for success, it will exceed that raise. That's because taxes are calculated in brackets, not on a per dollar basis. It's nice to say only his income above $250K is taxed at a higher rate, but that simply isn't true, in this case the bracket from $235 to $270 gets nailed, resulting in a punitive effect on those near the borders.

Second, the Obama tax increases were across the board, so every dime will be taxed at a higher rate.

How Obama's tax hikes hit the rich and middle class - Apr. 23, 2013

Here is how it really works. What happens is that the first $250K is taxed just like it has been, but anything that is made over $250K -- and only the amount over $250K -- is then taxed at the higher rate. The tax on the amount below $250K is not changed.

Nope, in fact, brackets are used rather than a per dollar scale. The bracket is affected when the trigger is reached, making the tax regressive for those barely tipping the trigger.

Example: Suppose the tax increase is 5% on income over $250K. This means that a person who reports income of $250K plus one dollar will be taxed an additional 5 cents. FIVE CENTS!

Yes, that's right, if it is 5% they are talking about then it means a 5 cent tax increase on people who make $250,001.

Let me repeat that. If you make $250,001, and they raise taxes 5% on people who make over $250K, then you will have to pay 5 cents more. Five cents. F.I.V.E. C.E.N.T.S. That is what people are so upset about. 5 cents.

If it is 5% a person making $260K might pay an additional $500. That's right, the proposed tax increase is approx. $42 a month on people making $260K, about $21,600 a month. Forty-four dollars out of twenty-one thousand. THIS is what all the right-wingers are screaming about. THIS is what all the Ayn Rand cultists are threatening to stop working over. THAT is how tax brackets work.

Oh, the humanity!!!

Try again.

 

[Uncensored2008]

not people making $250k, people making MORE THAN $250k.... That includes Matt Damon, Al Gore, George Soros, Barbra Striesand, George Clooney, and ALL them rich Hollywood libruls!

Not exactly;

Hollywood exempt from tax increases on the wealthy.

Remember, this is the most corrupt administration in American history - cronyism is king.

 

[expatriate]

not people making $250k, people making MORE THAN $250k.... That includes Matt Damon, Al Gore, George Soros, Barbra Striesand, George Clooney, and ALL them rich Hollywood libruls!

Not exactly;

Hollywood exempt from tax increases on the wealthy.

Remember, this is the most corrupt administration in American history - cronyism is king.

I know that the GOP has beaten into your head that corporations are people, but they really aren't...especially when it comes to income taxes. the tax break your link discusses is for the film INDUSTRY, not the people who get paid BY the film industry to act in their films.

God...are you really this fucking stupid, or is it an act?

 

[expatriate]

Being ground into the dirt...

Suppose they say they are going to raise taxes on incomes above $250K. People seem to think that this means if you earn $250K plus a dollar, that you owe an additional tax on the entire $250K. This is not correct. I actually hear stories about people who give away money, and do other things to avoid going "into a higher bracket" because they think they have to pay additional taxes on their entire earnings.

I doubt it. Pretty much everyone knows how progressive taxation works.

But you touch on two important issues;

First, taxation is done by brackets, so a person making $249,000 will see less take home with a raise to $251,000 - as he is punished for success, it will exceed that raise. That's because taxes are calculated in brackets, not on a per dollar basis. It's nice to say only his income above $250K is taxed at a higher rate, but that simply isn't true, in this case the bracket from $235 to $270 gets nailed, resulting in a punitive effect on those near the borders.

Second, the Obama tax increases were across the board, so every dime will be taxed at a higher rate.

How Obama's tax hikes hit the rich and middle class - Apr. 23, 2013

Here is how it really works. What happens is that the first $250K is taxed just like it has been, but anything that is made over $250K -- and only the amount over $250K -- is then taxed at the higher rate. The tax on the amount below $250K is not changed.

Nope, in fact, brackets are used rather than a per dollar scale. The bracket is affected when the trigger is reached, making the tax regressive for those barely tipping the trigger.

Example: Suppose the tax increase is 5% on income over $250K. This means that a person who reports income of $250K plus one dollar will be taxed an additional 5 cents. FIVE CENTS!

Yes, that's right, if it is 5% they are talking about then it means a 5 cent tax increase on people who make $250,001.

Let me repeat that. If you make $250,001, and they raise taxes 5% on people who make over $250K, then you will have to pay 5 cents more. Five cents. F.I.V.E. C.E.N.T.S. That is what people are so upset about. 5 cents.

If it is 5% a person making $260K might pay an additional $500. That's right, the proposed tax increase is approx. $42 a month on people making $260K, about $21,600 a month. Forty-four dollars out of twenty-one thousand. THIS is what all the right-wingers are screaming about. THIS is what all the Ayn Rand cultists are threatening to stop working over. THAT is how tax brackets work.

Oh, the humanity!!!

Try again.

you do understand what the "marginal" actually means in the term "marginal income tax rates"?

 

[Uncensored2008]

you do understand what the "marginal" actually means in the term "marginal income tax rates"?

Bracket - margin....

Leftist - moron....

 

[expatriate]

you do understand what the "marginal" actually means in the term "marginal income tax rates"?

Bracket - margin....

Leftist - moron....

so... if the marginal rate is only effective on income above the bottom of the bracket and below the top, please explain how it is regressive for those who earn just over the bottom number of the bracket.

I'll wait.

 

[Bfgrn]

Being ground into the dirt...

Suppose they say they are going to raise taxes on incomes above $250K. People seem to think that this means if you earn $250K plus a dollar, that you owe an additional tax on the entire $250K. This is not correct. I actually hear stories about people who give away money, and do other things to avoid going "into a higher bracket" because they think they have to pay additional taxes on their entire earnings.

I doubt it. Pretty much everyone knows how progressive taxation works.

But you touch on two important issues;

First, taxation is done by brackets, so a person making $249,000 will see less take home with a raise to $251,000 - as he is punished for success, it will exceed that raise. That's because taxes are calculated in brackets, not on a per dollar basis. It's nice to say only his income above $250K is taxed at a higher rate, but that simply isn't true, in this case the bracket from $235 to $270 gets nailed, resulting in a punitive effect on those near the borders.

Second, the Obama tax increases were across the board, so every dime will be taxed at a higher rate.

How Obama's tax hikes hit the rich and middle class - Apr. 23, 2013

Here is how it really works. What happens is that the first $250K is taxed just like it has been, but anything that is made over $250K -- and only the amount over $250K -- is then taxed at the higher rate. The tax on the amount below $250K is not changed.

Nope, in fact, brackets are used rather than a per dollar scale. The bracket is affected when the trigger is reached, making the tax regressive for those barely tipping the trigger.

Example: Suppose the tax increase is 5% on income over $250K. This means that a person who reports income of $250K plus one dollar will be taxed an additional 5 cents. FIVE CENTS!

Yes, that's right, if it is 5% they are talking about then it means a 5 cent tax increase on people who make $250,001.

Let me repeat that. If you make $250,001, and they raise taxes 5% on people who make over $250K, then you will have to pay 5 cents more. Five cents. F.I.V.E. C.E.N.T.S. That is what people are so upset about. 5 cents.

If it is 5% a person making $260K might pay an additional $500. That's right, the proposed tax increase is approx. $42 a month on people making $260K, about $21,600 a month. Forty-four dollars out of twenty-one thousand. THIS is what all the right-wingers are screaming about. THIS is what all the Ayn Rand cultists are threatening to stop working over. THAT is how tax brackets work.

Oh, the humanity!!!

Try again.

I don't have to 'try again'. I had it right the first time.

Tax Fallacies: Explaining Marginal Tax Rates

The premise: Barack Obama plans to raise taxes on people who make more than $250,000, so the reporter has gone and found people who earn a little more than that sum who plan to decrease their income so that they come in underneath the magic line.

Now, the obvious objection here is that the tax code doesn’t work that way. A tax increase affects the marginal dollar that a person gains. That means only every dollar over $250,000 is taxed at a higher rate. Obama is not proposing a tax system whereby somebody who goes from $249,999 to $250,000 suddenly becomes poorer. Nobody has ever enacted a tax hike like that in the history of the United States.

 

[expatriate]

he's a fucking moron who doesn't understand what the word marginal means.

are you really surprised?

 

[Uncensored2008]

For the Obamunists;

Fact, those who tip the magic "250K" trigger, will see an increase in rate back to $235K


Here's why, as if you didn't know...


How The Alternative Minimum Tax Could Slam You : NPR

 

[Bfgrn]

For the Obamunists;

Fact, those who tip the magic "250K" trigger, will see an increase in rate back to $235K


Here's why, as if you didn't know...


How The Alternative Minimum Tax Could Slam You : NPR

ATM...FIXED, Obama.

http://www.politifact.com/truth-o-meter/article/2013/jan/02/fiscal-cliff-deal-gets-heart-obamas-tax-promises/

 

[jasonnfree]

not people making $250k, people making MORE THAN $250k.... That includes Matt Damon, Al Gore, George Soros, Barbra Striesand, George Clooney, and ALL them rich Hollywood libruls!

Not exactly;

Hollywood exempt from tax increases on the wealthy.

Remember, this is the most corrupt administration in American history - cronyism is king.

How can you say that after the corruption of the Nixon and Reagan administrations? Anybody been convicted or gone to jail under Obama? No.