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BitaTruble -> RE: projected increase in our taxes if Senator Obama wins the presidency (10/20/2008 10:39:04 PM)
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ORIGINAL: Kirata
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ORIGINAL: BitaTruble
With that extra $10, I can go buy some apples .. or, you know.. oranges. [8D]
Ooooooo... or some shrimp!!
But help me out here if I'm being dense. If the marginal tax rate on the second tier in your example goes up, I'll still be paying more taxes. And the more I earn, the more I'll get bitten. If there's some kind of shell game going on here, I guess I'm a rube.
Of course, any tax bracket increase is going to raise your taxes but that won't change the margin. You'll still be taxed at the appropriate income for the appropriate bracket and the increased bracket will still cover only the excess $ amount over the preceeding bracket. There are some things that aren't subject to your tax bracket though and others which the more you earn, the less % you pay, so, sometimes it's a matter of perspective.
For example.. the guy earning $50,000 a year pays social security tax on 100% of that income while the guy earning billions might only be paying 1% social security tax on his income.. and no matter what tax bracket you're in, when you go to fill up that gas tank, it's approx 18% federal excise tax across the board. There's also state taxes to consider as well. My dad buys a winter coat in CA for $100 .. he's going to have to pay $108 or so actual dollars for that coat. If I buy that same coat in MN which doesn't tax coats, my cost is $100.
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Incidentally, though, my concern is more with corporate than personal taxes. High corporate taxes are a brake on the economy. I sit on the Executive Committee of a financial services corporation (Priest-Kings forgive me) and I see it every day. Giving people a few extra tax-reduction dollars in their pocket isn't going to go far. In the current economy, if corporate taxes don't go down then payroll expenses will have to. We've already started reducing staff at our branch offices, and believe me it's a real heartbreaker.
K.
How many people could you retain if the top brass in your company took a pay cut? As you said, something's got to go and payroll expenses do apply to both ends of the bell curve. Get rid of the brass bonus plan, have the Top Dogs take a pay cut and maybe you won't have to lay anyone off. Would that work for you guys? I don't know how big you are.. usually the bigger you are, the more leeway you have to play with salaries. I know the last company I worked for had about 30,000 employees.. CEO made in the neighborhood of $125 million a year at the same time they were laying people off. The total salary's they laid off would have been covered if he would just have taken a 5% reduction in salary.
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