Letter to Feinstein

[Coronita]

Anytime folks want to talk about a flat tax rate for everyone at 25%, I'll be happy with that. People that make more and still end up paying more taxes on an absolute basis. When you're taxed at 40-50% just because you have the capability to earn in that bracket, seems to punish those with those capacities. And like some people say, 250k-$300k households are very feasible with a dual income parents working in a "middle class" job. Like I said before, kiss your cap gain tax breaks away.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[an]

Here’s my rough estimate of someone who make $250k and live in CA. Fed tax rate is 33% and state is 9%. You’re talking about 42% going to taxes. $250k * 0.58 = $145k – $39k (Married maxing out 401k and IRA) = $106k/12 = $8.8k/month.

Rent = $3k
2 car payments = ~$1k
Daycare = ~$1k/kid minimum, so if you have 2 kids, that’s $2k
Insurance = $300
Fuel = $500
Food = $1k
Misc. expense = $1k

That’s roughly $8.8k in expense = $0 in saving except for retirement. That’s not even considering college fund. If you cut down on food and never eat out, you might save $500/month, but that’s chump change when you’re talking about someone who makes $250k/yr.

If you’re talking about increasing taxes on the people making $250k and reducing taxes on those who make less, then there will be little incentive to have 2 income house if it would put them in a much hire tax bracket.

[an]

Here’s my rough estimate of someone who make $250k and live in CA. Fed tax rate is 33% and state is 9%. You’re talking about 42% going to taxes. $250k * 0.58 = $145k – $39k (Married maxing out 401k and IRA) = $106k/12 = $8.8k/month.

Rent = $3k
2 car payments = ~$1k
Daycare = ~$1k/kid minimum, so if you have 2 kids, that’s $2k
Insurance = $300
Fuel = $500
Food = $1k
Misc. expense = $1k

That’s roughly $8.8k in expense = $0 in saving except for retirement. That’s not even considering college fund. If you cut down on food and never eat out, you might save $500/month, but that’s chump change when you’re talking about someone who makes $250k/yr.

If you’re talking about increasing taxes on the people making $250k and reducing taxes on those who make less, then there will be little incentive to have 2 income house if it would put them in a much hire tax bracket.

[an]

Here’s my rough estimate of someone who make $250k and live in CA. Fed tax rate is 33% and state is 9%. You’re talking about 42% going to taxes. $250k * 0.58 = $145k – $39k (Married maxing out 401k and IRA) = $106k/12 = $8.8k/month.

Rent = $3k
2 car payments = ~$1k
Daycare = ~$1k/kid minimum, so if you have 2 kids, that’s $2k
Insurance = $300
Fuel = $500
Food = $1k
Misc. expense = $1k

That’s roughly $8.8k in expense = $0 in saving except for retirement. That’s not even considering college fund. If you cut down on food and never eat out, you might save $500/month, but that’s chump change when you’re talking about someone who makes $250k/yr.

If you’re talking about increasing taxes on the people making $250k and reducing taxes on those who make less, then there will be little incentive to have 2 income house if it would put them in a much hire tax bracket.

[an]

Here’s my rough estimate of someone who make $250k and live in CA. Fed tax rate is 33% and state is 9%. You’re talking about 42% going to taxes. $250k * 0.58 = $145k – $39k (Married maxing out 401k and IRA) = $106k/12 = $8.8k/month.

Rent = $3k
2 car payments = ~$1k
Daycare = ~$1k/kid minimum, so if you have 2 kids, that’s $2k
Insurance = $300
Fuel = $500
Food = $1k
Misc. expense = $1k

That’s roughly $8.8k in expense = $0 in saving except for retirement. That’s not even considering college fund. If you cut down on food and never eat out, you might save $500/month, but that’s chump change when you’re talking about someone who makes $250k/yr.

If you’re talking about increasing taxes on the people making $250k and reducing taxes on those who make less, then there will be little incentive to have 2 income house if it would put them in a much hire tax bracket.

[an]

Here’s my rough estimate of someone who make $250k and live in CA. Fed tax rate is 33% and state is 9%. You’re talking about 42% going to taxes. $250k * 0.58 = $145k – $39k (Married maxing out 401k and IRA) = $106k/12 = $8.8k/month.

Rent = $3k
2 car payments = ~$1k
Daycare = ~$1k/kid minimum, so if you have 2 kids, that’s $2k
Insurance = $300
Fuel = $500
Food = $1k
Misc. expense = $1k

That’s roughly $8.8k in expense = $0 in saving except for retirement. That’s not even considering college fund. If you cut down on food and never eat out, you might save $500/month, but that’s chump change when you’re talking about someone who makes $250k/yr.

If you’re talking about increasing taxes on the people making $250k and reducing taxes on those who make less, then there will be little incentive to have 2 income house if it would put them in a much hire tax bracket.

[TheBreeze]

First off, you forgot taxes and payroll deductions – We bring home about 63% of gross so that turns 225K into $145K.

$225K? We’re talking about raising taxes on those making $250K or more. You’re just a middle-class schlub.

[TheBreeze]

First off, you forgot taxes and payroll deductions – We bring home about 63% of gross so that turns 225K into $145K.

$225K? We’re talking about raising taxes on those making $250K or more. You’re just a middle-class schlub.

[TheBreeze]

First off, you forgot taxes and payroll deductions – We bring home about 63% of gross so that turns 225K into $145K.

$225K? We’re talking about raising taxes on those making $250K or more. You’re just a middle-class schlub.

[TheBreeze]

First off, you forgot taxes and payroll deductions – We bring home about 63% of gross so that turns 225K into $145K.

$225K? We’re talking about raising taxes on those making $250K or more. You’re just a middle-class schlub.

[TheBreeze]

First off, you forgot taxes and payroll deductions – We bring home about 63% of gross so that turns 225K into $145K.

$225K? We’re talking about raising taxes on those making $250K or more. You’re just a middle-class schlub.

[Coronita]

Here's my rough estimate of someone who make $250k and live in CA. Fed tax rate is 33% and state is 9%. You're talking about 42% going to taxes. $250k * 0.58 = $145k – $39k (Married maxing out 401k and IRA) = $106k/12 = $8.8k/month.

Though I generally agree with what you said, I think perhaps in practice the 40% tax rate is a little overstated for most households in this bracket…Generally, you are well aware of the problem ahead of time, and you itemize and do what you can to bring your tax bracket down.

 

With the exception of last year, our tax rates were about 17%/6% , hitting AMT each year, though we have quite a bit of deductions… Having a large mortgage interest deduction/proptax deduction somewhat helps the sting a bit, as well as a few other "odds and ends" in donations. There is somewhat of a phase out in itemized deductions. 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Here's my rough estimate of someone who make $250k and live in CA. Fed tax rate is 33% and state is 9%. You're talking about 42% going to taxes. $250k * 0.58 = $145k – $39k (Married maxing out 401k and IRA) = $106k/12 = $8.8k/month.

Though I generally agree with what you said, I think perhaps in practice the 40% tax rate is a little overstated for most households in this bracket…Generally, you are well aware of the problem ahead of time, and you itemize and do what you can to bring your tax bracket down.

 

With the exception of last year, our tax rates were about 17%/6% , hitting AMT each year, though we have quite a bit of deductions… Having a large mortgage interest deduction/proptax deduction somewhat helps the sting a bit, as well as a few other "odds and ends" in donations. There is somewhat of a phase out in itemized deductions. 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Here's my rough estimate of someone who make $250k and live in CA. Fed tax rate is 33% and state is 9%. You're talking about 42% going to taxes. $250k * 0.58 = $145k – $39k (Married maxing out 401k and IRA) = $106k/12 = $8.8k/month.

Though I generally agree with what you said, I think perhaps in practice the 40% tax rate is a little overstated for most households in this bracket…Generally, you are well aware of the problem ahead of time, and you itemize and do what you can to bring your tax bracket down.

 

With the exception of last year, our tax rates were about 17%/6% , hitting AMT each year, though we have quite a bit of deductions… Having a large mortgage interest deduction/proptax deduction somewhat helps the sting a bit, as well as a few other "odds and ends" in donations. There is somewhat of a phase out in itemized deductions. 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Here's my rough estimate of someone who make $250k and live in CA. Fed tax rate is 33% and state is 9%. You're talking about 42% going to taxes. $250k * 0.58 = $145k – $39k (Married maxing out 401k and IRA) = $106k/12 = $8.8k/month.

Though I generally agree with what you said, I think perhaps in practice the 40% tax rate is a little overstated for most households in this bracket…Generally, you are well aware of the problem ahead of time, and you itemize and do what you can to bring your tax bracket down.

 

With the exception of last year, our tax rates were about 17%/6% , hitting AMT each year, though we have quite a bit of deductions… Having a large mortgage interest deduction/proptax deduction somewhat helps the sting a bit, as well as a few other "odds and ends" in donations. There is somewhat of a phase out in itemized deductions. 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Author]

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