Advocates promised the new tax would bring in over $1 billion a year in new revenue. And they quickly saw their predictions surpassed: the state Department of Revenue estimates it will generate over $1.5 billion this fiscal year.
You are looking at two different tax systems. The effective US tax rate (the rate you actually pay is much much less). Our household makes $300k per year, and we have a $650k net worth. Our income taxes every year? Less than 7% of that, which is absurdly low. The ultra wealthy are taxed even less than that. The US is propped up by taxes from the middle-class because the more you makes, the easier it becomes to optimize and lower your effective tax rate. We need to tax the rich more.
If you make $579k, you don’t pay 37% of that. You pay the above rate for each range of dollars you earn. So everyone pays 10% on the first $11k they earn.
There’s also deductions including the standard deduction of $13,850 (so subtract that from what you earned)
You mean the guy who thinks average tax rate is relevant to a discussion about taxable income over $1M?
I would ask you to name some of these abundant places, but between the pithy insults and embarrassing grammar, I don’t actually care what you have to say. I provided sources for the high standard of living, and marginal tax rates are easy to find.
Western Europe
The average US rate is 25% while the average Western Europe rate is below 20%….
They even get more out of those taxes too.
You are looking at two different tax systems. The effective US tax rate (the rate you actually pay is much much less). Our household makes $300k per year, and we have a $650k net worth. Our income taxes every year? Less than 7% of that, which is absurdly low. The ultra wealthy are taxed even less than that. The US is propped up by taxes from the middle-class because the more you makes, the easier it becomes to optimize and lower your effective tax rate. We need to tax the rich more.
Ok, now what’s the top tax bracket? We’re talking about people making >$1M/yr.
10% $0 to $11,000.
12% $11,001 to $44,725.
22% $44,726 to $95,375.
24% $95,376 to $182,100.
32% $182,101 to $231,250.
35% $231,251 to $578,125.
37% $578,126 or more.
If you make $579k, you don’t pay 37% of that. You pay the above rate for each range of dollars you earn. So everyone pays 10% on the first $11k they earn.
There’s also deductions including the standard deduction of $13,850 (so subtract that from what you earned)
Some good information: https://www.nerdwallet.com/article/taxes/federal-income-tax-brackets
Yes, I understand how marginal rates work.
The one we’re talking about is the state income tax:
5% - $0 to $1,000,000
9% - $1,000,000+
They aren’t paying the highest marginal tax rates, that’s what the loopholes are for. Trusts are well known for this exact scenario.
Nice cop out.
Eh… be proud of the lower taxes and quality of life if you want I guess.
So, you agree that places with higher taxes have a higher quality of life? Thanks, I guess.
The tax is specifically on taxable income over $1M (after the loopholes).
And Massachusetts in particular is noted for having a high quality of life.
Where, what?
I’m about to do some googling, but Im curious what you’re basing that on. Like most things, this seems n subjective.
https://en.m.wikipedia.org/wiki/List_of_U.S._states_and_territories_by_Human_Development_Index_score
https://worldpopulationreview.com/state-rankings/quality-of-life-by-state
https://wallethub.com/edu/best-states-to-live-in/62617
It’s pretty easy to search: https://duckduckgo.com/?q=quality of life Massachusetts&ko=-1&ia=web
Sure, it’s somewhat subjective. But it’s fairly consistent, and not just me making stuff up.
It’s funny to say you’re ignoring the abundance of places that do have lower taxes and are also much better places to live.
The only places better than Massachusetts all dont all have higher taxes despite your original asinine claim…
But they, people love living in a bubble.
You mean the guy who thinks average tax rate is relevant to a discussion about taxable income over $1M?
I would ask you to name some of these abundant places, but between the pithy insults and embarrassing grammar, I don’t actually care what you have to say. I provided sources for the high standard of living, and marginal tax rates are easy to find.
Enjoy your bubble.