Posted on 02/04/2010 4:51:56 AM PST by grundle
The Senate health-care bill would raise effective marginal tax rates on lower and middle-income singles and families up to 41%.
The effective marginal tax rate is the answer to the question: "If I earn $1 more, how much less than $1 do I get to save or spend?" If you can keep that full dollar for your disposal, the effective marginal tax rate is zero. If earning another dollar does not raise your disposable income by even a penny, the effective marginal tax rate is 100 percent.
Consider, then, the figure below constructed for a two-earner family with two school-age children, one of whom is in college. The solid line shows the EMTR based on income tax law prior to the health-care bill (it excludes the impact of the payroll taxes). The dashed line displays the damaging increases in the EMTR assuming the health insurance premium subsidies contained in the Senate health-care bill and insurance cost estimates provided by the Kaiser Family Foundation. As a family's income rises above 133% of poverty, Medicaid eligibility will be eliminated but a family that does not receive health insurance from their employer will receive a subsidy to purchase health insurance in the "exchange." In turn, however, as their efforts yield higher income, subsidies are clawed back or effectively taxed away.
How can a family be expected to get ahead when taking an extra shift, finding a way for a second parent to work, or investing in night school courses to qualify for a raise means handing the government as much as 41% of the additional income earned?
Taxes interfere with the basic rewards for work, thrift, and saving. Excessive EMTRs damage these incentives, discourage the taxed, and threaten to rob America of a vitality that is its signature.
(Excerpt) Read more at online.wsj.com ...
This doesn’t make sense. The marginal tax rate for $80K is a lot higher than the 12% shown on the graph.
That’s just the federal take... add state/local tax and families keep less than 50% of what they earn
I'd amend that to "can't"
If I make 50K a year, that puts me solidly in the middle of middle class. Food, Mortgage, and Utilities eat up a pretty good chunk of that.
The reason that I don't hide my money in tax-free offshore accounts isn't because I don't know how. It's because there isn't any to hide.
That's a fact. No thinking about it.
Damn, are you all wee-weed up? You need to chill .Depends on what the definition of “maybe” is ! Hell, he can fall off his chair and break his neck in the oval office when he sits back and puts his feet up on the desk.Always live for the day . Tomorrow may never come .
When ya add up all the taxes the individual pays in the ol USofA these days, state fed and local plus parcel plus ??, isn’t the rate close to what the most socialist country tax their herds at?
drink
That chart is incorrect.
For married filing jointly, the standard deduction is $11,400. 4 times the personal exemption of $3,650 is $14,600. Added together these are $26,000. This is deducted off the AGI to get taxable income (for a very simple return.)
The 15% bracket starts at $16,700 or $42,700 AGI. That goes all the way out to $67,900 or $93,900 AGI where the 25% bracket kicks in.
The chart shows 12% out to $90,000.
Holy !@#$.
And if you were in a high-cost part of the country you’d be struggling to support a family at $50k. Maybe this will help to further wake up voters in the Northeast and CA.
Any Which Way - including loose...
Sooner or later the will be a tax revolt. It’s coming if this doesn’t stop now.
YES! YES! YES!
That is why the rich love to soak people with taxes. They moved their money offshore years ago and they won’t feel a thing. Offshore IBCs and Offshore trusts are perfect instruments formed against the corruption in Washington.
“and are thus not subject to Federal income taxes.”
Which will be eventually subjected to Federal confiscations.
“That chart is incorrect.”
That was my first reaction. I think the reason that the term “effective MTR” was used is because behind the scenes they are accounting for the current tax subsidy for employer-based coverage. So while the nominal MTR at $50K AGI might be 15%, the tax exclusion effectively gives people in this income bracket a 15% discount on the cost of employer-provided HI. This discount applies to the “employer-paid” share even though the employee never directly sees this savings, as the CBO and other modelers generally assume that every dollar paid for health benefits is a dollar the employer otherwise would have paid in wages etc.
So if the typical worker in this income range has a family policy with premiums equal to 20% of income, the savings amount to 3%, dropping the EMTR from 15% to 12%.
Thanks - that sort of makes sense. I figured they weren’t making weird adjustments when they said they were not counting payroll taxes.
Of course loose, impeach or march on Congress!
I want change I can believe in.
why work...why save....anything you have they'll take ....assume....or index so you pay the highest taxes or insurance rates...
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