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