@Pandora Quite likely so.
@Tropical_Willie Ha! Good point.
@ragingloli How true.
@augustlan It would be a great idea to teach at least the basics of our tax system. Certainly, people should know that it is dunderhead to stop earning money part way through the year to avoid moving into a higher bracket. They are deliberately losing money they could easily earn.
@Linda_Owl The point is she would not pay a little more, she’d make a LOT more. See my response to @Jaxk below for why.
@jaytkay In point of fact, both you and Warren Buffett pay exactly the same tax rate of 10% on the first $8,700 of taxable income you earn. You both get to keep to keep exactly the same amount of it.
@bkcunningham No. When your income goes up, what you hang on to doesn’t go down. It’s insane to think otherwise. How would anyone ever become wealthy if earning more money meant you ended up with less?
@glacial See—you can only debate facts with those who live in the fact-based Universe.
@JLeslie I would not doubt it one bit.
@Jaxk Let’s do the math,assuming that her taxable earnings after deductions are $25,000 per month, or $250,000 in 10 months.
0 – $17,400 is taxed at 10%, so that’s $1,740 in taxes
$17,401 – $70,700 @ 15% = $7,995
$70,701 – $142,700 @ 25% = $18,000
$142,701 – $217,450 @ 28% = $20,930
$217,451 – $250,000 @ 33% = $10,741.50
So if she stops there 10 months into the year, she will have taxable earnings of $250,000, a tax liability of $59,406.50, so she would keep $190,593.50.
If she works the next two months, earning $50,000 in taxable income and it is taxed at the new proposed rate of 39.6%, the tax comes to $19,800. She keeps $30,200 of that two month earning. Would you rather close out the year with after-tax earnings of $190,593.50 or $220,793.50?
Me, I’d go for the higher sum. And El Rushbo makes $50,000,000 a year. Ever notice that he doesn’t stop working after the first 2 days to keep from going into a top bracket? His audience may be a bunch of dunderheads. He may be able to convince them they need to do that. But Limbaugh himself is not that stupid.