Posted on 11/26/2022 1:44:44 PM PST by amorphous
Left to right (bottom scale) represents number of taxable transactions between individuals in the 22% tax bracket.
We’re being nibbled to death by ducks.
This doesn’t count sales taxes, surcharges, fees, etc.
No linked article...
I always explain the marginal tax rate to clients, explaining the total tax on the top layer of income for Federal, state, local, and Self Employment tax.
If a person were in the 22% Fed bracket + state rate (averages around 7% depending upon the state) + local tax often 1-2%, + SE Tax at 14.2% (15.3% x 92.35%)
Thus the marginal tax rate is 45.2%
Let’s say the layer amount is $10,000. I explain that an equipment expenditure that qualifies for section 179 immediate write-off would save $4,520 if purchased and put into use by December 31st.
This is one excellent tool for year end tax planning.
Often state and local have different section 179 amount limitations, so you must be careful.
I have farmers purchasing $100,000+ tractors the last week of the year to save $45,000+ tax dollars.
One important tool for farmers who have running losses every year.
Beware- Unless you used the alternate farm computation on the back of the SE form, you may not qualify for Social Security Disability if something happens due to the 20 quarters in the last 10 years requirement to qualify.
It’s a trap that could cost farmers there disability coverage.
I make sure they qualify by keeping a running log in the file. If you have six years of consecutive losses and get injured, you are screwed no matter how many years of employment coverage unless you use the alternate method.
There must be some inherent, as yet unseen ending to this process of government theft of wealth/industry. I don't fully understand/grasp what the final consequences will be. This chart does seem to show why the need for an every increasing supply of money however.
It also shows how those who skim even a small percentage from servicing the need for money reap enormous benefit.
Through control of money, moneyed elite are able to cause periodic economic hardships which force people to sell real assets at greatly reduced prices, even though they have endless pockets. The main goal is forcing the sell, imo. Then Gates, Black Rock, etc., are able to scoop up even more real assets in exchange for printed money.
The Great Depression serves as just one example of this scheme.
Our founding fathers warned us if we ever lost control of our money to expect it.
At an ever increasing rate, they will own everything and we will own nothing. I'm not happy about it.
The key to the scheme is the ability to tax every transaction, be it income or sales.
The same can't be said for property tax, VAT, or tariffs? In these, the tax is only taken once or on an annual basis. It's also in the open, up front, not stealthy like income or sales tax.
As an example of sales tax being similar, think of the tax collected from an automobile sale during its life, if it changes hands half-a-dozen times, etc.
And now they're going after ebay sales reported through Paypal. So if you sell your furniture on ebay, they tax the sale/income of that.
Yep. Was just keeping it simple by using only the net income tax paid by those making just over 40k/year. It's amazing how much government takes from its citizens these days.
Today's tax burdens make one yearn for days of slavery during the Roman Empire. I've read what they called slavery back then was only a 10% flat tax.
Then that's why I try to do as much DIY as I can. So far, they're not able to tax my labor when I do for myself or for others for free.
I hear ya concerning a well planned tax strategy. Very important to know ALL the ins and outs, or hire someone who does! Like much in life, unwise decisions can have long lasting consequences.
Add in ObamaCare subsidies, Earned Income Tax Credit, other child tax credits, stimulus checks, etc. and it actually went over 100% for some people during the pandemic.
We all have our preferred tools. Some prefer tables to graphs.
Lol! That’s funny!
thank you
i was scratching my head as well
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