Brian, you're doing something wrong. 35% may be your incremental tax rate,
but with a similar income, my actual (paid) rate is below 15% (state and
fed). (divide "total tax" by AGI)

You're are way above "middle" class!

I pulled that "middle class" line on my boss many years ago and was brought
up sharp. If you read O'Brian (Aubrey/Maturin) you'll be told that no one
ever admits to being either rich or asleep. (Just so there is some nautical
reference to this discussion.)

Roger (retired)

http://home.earthlink.net/~derbyrm

"Brian D" wrote in message
...

but our combined tax rate (fed plus state) is around 35%.
Our social security will dissolve before we get there (or
will reduce in benefits, increase in age requirement, etc ...same thing as
'going away').

the age old solution is to build a baot an sail away from it all.
I think if you register your boat in Holland you can write if off.


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I knew a guy in Anchorage, Alaska who tried to do that. He rigged a sail on
a big inner tube and tried to commit suicide by sailing out of Cook Inlet
and into the big blue, to last until he died. Darn USCG picked him up
halfway down the inlet. When I met him, he was glad he had the bad luck of
getting spotted and called a fool. Now he's a psychology teacher ...go
figure.

Brian D



"William R. Watt" wrote in message
...

the age old solution is to build a baot an sail away from it all.
I think if you register your boat in Holland you can write if off.


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Ooops, yes. You're right. The last increment of pay is what gets taxed at
that rate. I'll have to look and see what the net is.

Brian D



"Roger Derby" wrote in message
nk.net...
Brian, you're doing something wrong. 35% may be your incremental tax
rate, but with a similar income, my actual (paid) rate is below 15% (state
and fed). (divide "total tax" by AGI)

You're are way above "middle" class!

I pulled that "middle class" line on my boss many years ago and was
brought up sharp. If you read O'Brian (Aubrey/Maturin) you'll be told
that no one ever admits to being either rich or asleep. (Just so there is
some nautical reference to this discussion.)

Roger (retired)

http://home.earthlink.net/~derbyrm

"Brian D" wrote in message
...

but our combined tax rate (fed plus state) is around 35%.
Our social security will dissolve before we get there (or
will reduce in benefits, increase in age requirement, etc ...same thing
as 'going away').

Brian, you're doing something wrong. 35% may be your incremental tax
rate, but with a similar income, my actual (paid) rate is below 15% (state
and fed). (divide "total tax" by AGI)


?? How do you manage that? The effective or actual tax rate for lower
incomes is still around 20%.

You're are way above "middle" class!


At $130K income, yes. By a factor of 2.


Brian D wrote:
Ooops, yes. You're right. The last increment of pay is what gets taxed at
that rate. I'll have to look and see what the net is.

Our net income tax rate, state & federal, is around 31%. That doesn't
include lost income from pre-payment of taxes, or local tax, property
tax, state sales tax (7% in NC, it was at 7.5% and will soon go back
up), etc etc.

I am not in favor of paying high taxes nor in favor of the gov't wasting
my money, but I *am* very definitely against people lying for some
political gain.

DSK

Honestly, I'm not sure. Check your own numbers. That 20% is on taxable
income, not AGI.

When you're retired and living on investments and pensions, your income is
what you choose it to be, but I've not played any games that way. I do
choose tax-free investments where possible and preferred things such as
dividend income funds, but then that's what the tax code is all about --
directing people's investments. If the government wants me to loan my money
to local school districts as opposed to corporations, it's OK if it's
profitable.

"Standard Deduction." No games there. I just put the numbers into TurboTax
and take what comes out as the number on my check.

I first noticed the low rate (as opposed to my perceptions) a few years ago.

Regarding the lost income by "withholding," I've been paying the
under-withheld penalty for most years recently. That's one that's worth
figuring out and adjusting.

Roger

http://home.earthlink.net/~derbyrm

"DSK" wrote in message
. ..
Brian, you're doing something wrong. 35% may be your incremental tax
rate, but with a similar income, my actual (paid) rate is below 15%
(state and fed). (divide "total tax" by AGI)


?? How do you manage that? The effective or actual tax rate for lower
incomes is still around 20%.

Hey, Doug,

I tried to respond off list, but your domain of "dontbotherme" bounced.

Sorry, group.

Roger

http://home.earthlink.net/~derbyrm
"DSK" wrote in message
. ..
Brian, you're doing something wrong. 35% may be your incremental tax
rate, but with a similar income, my actual (paid) rate is below 15%
(state and fed). (divide "total tax" by AGI)


?? How do you manage that? The effective or actual tax rate for lower
incomes is still around 20%.

You're are way above "middle" class!


At $130K income, yes. By a factor of 2.


Brian D wrote:
Ooops, yes. You're right. The last increment of pay is what gets taxed
at that rate. I'll have to look and see what the net is.

Our net income tax rate, state & federal, is around 31%. That doesn't
include lost income from pre-payment of taxes, or local tax, property tax,
state sales tax (7% in NC, it was at 7.5% and will soon go back up), etc
etc.

I am not in favor of paying high taxes nor in favor of the gov't wasting
my money, but I *am* very definitely against people lying for some
political gain.

DSK