Recent Posts1
Campfire Talk / Re: classic barn find
« Last Post by AzCal Retred on Today at 11:09:26 am »@ # 23: " all our government employees pay income tax "
That's so cute...you really aren't paying attention, are you? Whilst we all are supposed to pay our "fair share", having a large income can buy you dispensation via tax lawyers. I've never had a tax lawyer myself, I just paid what was deemed fair. Apparently "45", the self described billionaire, feels no such obligation. He believes it's all good to have others carry your water.
I like the "dollars left over" income analysis. Assume it takes $5,000 yearly to keep a person reasonably fed. Another $2000 or so for clothes. Maybe $6,000 a year for a safe place to sleep. A baseline of maybe $15,000 keeps you in clothes, food & shelter, no medical or savings. I grew up with folks raising 3-5 kids on a $7000 yearly income, so it's doable. Unpleasant, but doable.
For a single person making $12 - $15 hourly, working regularly, their yearly after tax income is maybe $20K - $25K. That leaves maybe $5K - $10K surplus, or "discretionary" income, for medical, magazines, transportation, etc.
For a single person making "real" money, say $50 - $100 per hour, Yearly after tax becomes $75K - $150K. The baseline expense is probably higher, maybe $20K. That guy would have maybe $55K to $130K "discretionary" income for fun stuff like health insurance, car payments, maybe some toys, etc.
Now look at a guy pulling down $250K yearly. Still takes only about $25K for his basics, and his yearly after tax would be around $175K. The discretionary portion becomes about $150K.
All these guys are folks you might work with. Let's look at Management level numbers.
A corporate manager can make $1,000K. If he paid full tax, which he wouldn't, take home is around $700,000. It takes the same $25K to feed, house & clothe this guy. Often there are perks like free company cars, housing, etc. Even with nothing extra, this manager's discretionary portion goes to $675K. And there's no shortage of corporate folks making $10M - $20M yearly.
The guy with $675K in yearly discretionary money can afford a higher tax rate than the idiot setting there at $12 per hour, there's just more slack. And for truly stratospheric incomes, the numbers get even more extreme. Tax rates for the cognoscenti in the 1950's were higher than today and there was still no shortage of millionaires. None of the top 1% ever missed a meal at a 40% - 45% tax rate, and we had roads & bridges that weren't 3rd world.
.
That's so cute...you really aren't paying attention, are you? Whilst we all are supposed to pay our "fair share", having a large income can buy you dispensation via tax lawyers. I've never had a tax lawyer myself, I just paid what was deemed fair. Apparently "45", the self described billionaire, feels no such obligation. He believes it's all good to have others carry your water.
I like the "dollars left over" income analysis. Assume it takes $5,000 yearly to keep a person reasonably fed. Another $2000 or so for clothes. Maybe $6,000 a year for a safe place to sleep. A baseline of maybe $15,000 keeps you in clothes, food & shelter, no medical or savings. I grew up with folks raising 3-5 kids on a $7000 yearly income, so it's doable. Unpleasant, but doable.
For a single person making $12 - $15 hourly, working regularly, their yearly after tax income is maybe $20K - $25K. That leaves maybe $5K - $10K surplus, or "discretionary" income, for medical, magazines, transportation, etc.
For a single person making "real" money, say $50 - $100 per hour, Yearly after tax becomes $75K - $150K. The baseline expense is probably higher, maybe $20K. That guy would have maybe $55K to $130K "discretionary" income for fun stuff like health insurance, car payments, maybe some toys, etc.
Now look at a guy pulling down $250K yearly. Still takes only about $25K for his basics, and his yearly after tax would be around $175K. The discretionary portion becomes about $150K.
All these guys are folks you might work with. Let's look at Management level numbers.
A corporate manager can make $1,000K. If he paid full tax, which he wouldn't, take home is around $700,000. It takes the same $25K to feed, house & clothe this guy. Often there are perks like free company cars, housing, etc. Even with nothing extra, this manager's discretionary portion goes to $675K. And there's no shortage of corporate folks making $10M - $20M yearly.
The guy with $675K in yearly discretionary money can afford a higher tax rate than the idiot setting there at $12 per hour, there's just more slack. And for truly stratospheric incomes, the numbers get even more extreme. Tax rates for the cognoscenti in the 1950's were higher than today and there was still no shortage of millionaires. None of the top 1% ever missed a meal at a 40% - 45% tax rate, and we had roads & bridges that weren't 3rd world.
.
