Bring back the 91% tax rate

[CHenry]

Well maybe if we stopped giving multinational corporations tax breaks to relocate to other countries that might be a good start.

The way it is now corporations can lay their workers off, relocate production to another country and headquarters to the cayman islands and write the whole thing off on their tax returns as a normal business expense in addition to avoiding taxes.

How come THAT doesn't get fixed in Washington DC? Who is it that owns the congress critters that determine the tax code?

This is exactly right also!

 

[ignerntbend]

I very much prefer that we just close all the loop holes. If we close all the loop holes people won't be paying more taxes. They'll just be giving more of their money to the government.

 

[Shadowrider]

So who do you want to believe? The lefty thinkprogress.org or the WSJ? Let me break it down for you. Obama got re-elected on just this type of drivel. In the 2+ weeks since the news has been filled with corporations announcing layoffs, cutbacks and closures. Do you feel like you were lied to? I think I'll stick with the WSJ's opinion...

 

[ignerntbend]

So who do you want to believe? The lefty thinkprogress.org or the WSJ? Let me break it down for you. Obama got re-elected on just this type of drivel. In the 2+ weeks since the news has been filled with corporations announcing layoffs, cutbacks and closures. Do you feel like you were lied to? I think I'll stick with the WSJ's opinion...

Wall Street Journal hasn't been the same since forn billionaire Rupert Murdock bought it. We only have two great national newspapers, and now one is in the hands of a forn billionaire.

 

[Hobbes]

So who do you want to believe? The lefty thinkprogress.org or the WSJ? Let me break it down for you. Obama got re-elected on just this type of drivel. In the 2+ weeks since the news has been filled with corporations announcing layoffs, cutbacks and closures. Do you feel like you were lied to? I think I'll stick with the WSJ's opinion...

Corporations always announce their layoffs in the 4th quarter of the year. Always have, nothing new.
You wouldn't want everyone to jump to conclusions and assume they are connected when they are not, would you?

 

[mons meg]

That's the withholding rate for a bonus or overtime, not the marginal tax rates on your total income for the year. If your income increases enough to push you to a higher bracket, the higher rate is applied to the additional income earned; the "first" money earned is taxed at the "first" or lower rate.

For example, the first 25k of you income is taxed the same as someone who only earned 25k in total (deductions, credits, EIC etc. notwithstanding). The next monies are taxed at the progressively higher rate brackets.

The withholding is often higher on bonuses and overtime because many people allot their taxes to be exactly withheld over their normal paycheck, and that extra income is withheld higher in case it goes into a higher marginal rate bracket. If you don't hit that bracket, you get it back on your return filing the next year. This is a payroll thing, as in your employer or payroll processor, not necessarily the government.

Cardsfan beat me to it....you should/would have gotten most of that money back when you filed your taxes.

 

[mons meg]

Let's all go read (or re-read) Henry Hazlitt's Economics in One Lesson and then check back into this thread. If you don't want to drop $10 on your Kindle or Nook, it's available online for free:

http://www.economicsinonelesson.com/

 

[Talacker]

Let's all go read (or re-read) Henry Hazlitt's Economics in One Lesson and then check back into this thread. If you don't want to drop $10 on your Kindle or Nook, it's available online for free:

http://www.economicsinonelesson.com/

Here here. Excellent book. The economic illiteracy on this thread is astounding. Everyone here is in complete agreement in one's personal, unfettered right to arms. But somehow we lose sight of that same personal freedom when it comes to the right to one's fiscal property. Apparently my bank account and income stream are free game for the government pick pockets and their constituents.

 

[inactive]

Cardsfan beat me to it....you should/would have gotten most of that money back when you filed your taxes.

Heh, the "get money back" part of course assumes the withholding matches up to one's tax burden at the end of the year. Which happens exactly $0 percent of the time. I swear that the W4 is the least helpful tool the government has even invented, and that's saying something. Actually, I think the government designed it so we're floating them money. For most people, I think the W4 over-withholds federal and for OK it never withholds quite enough :-/

I think if the withholding actually matched up to what people owe at the end of the year, there wouldn't be near the confusion.



Thanks for the recommended read by the way.

 

[CHenry]

The economic illiteracy on this thread is astounding.

I'll be the first to admit I'm no economic guru. Hell I can hardly balance my checkbook (sarcasm). I dont know what the solution is but I know we need to start thinking outside the box because for the last 50 years we have been going down this slippery slope we are almost to the bottom of. I threw this article out thinking it was interesting and just wanted us to chew it a little and see what happened.
I'm a conservative (I sit close to the middle) but I share some democratic views and quite frankly, until we can all start doing this, we fail.