Nope, waaaaay more than 35%. You get into incomes where they're blended average is just about the cap. They easisly best the 50%. Effective rate of 25%???? I see that in federal alone every year and I don't have clients who approach the really high end. You take a single person living in NYC pulling down a couple million a year and he/she can easily hit the 50% mark for income taxes. Add in all the other taxes and I hate to think what they're approaching.

 

If you want to go above $500,000 a year in income, yes you may start getting closer to 50%. The higher you go, the closer the effective rate gets to the marginal rate. So if we are worried about that couple making $2M, yes, they are right at 50%. And that person is very happy with that rate in the US versus what they woul pay elsewhere in the world. e.g. In Germany, if you make over $100k you are already in the 45% bracket, plus a 5.5% surcharge, with a 25% capital gains rate plus a 5.5% surcharge, plus taxes for their retirement and social programs.

If you want to go above $500,000 a year in income, yes you may start getting closer to 50%. The higher you go, the closer the effective rate gets to the marginal rate. So if we are worried about that couple making $2M, yes, they are right at 50%. And that person is very happy with that rate in the US versus what they woul pay elsewhere in the world. e.g. In Germany, if you make over $100k you are already in the 45% bracket, plus a 5.5% surcharge, with a 25% capital gains rate plus a 5.5% surcharge, plus taxes for their retirement and social programs.

 

This isn't Germany, thank God.

 

You're not going to find ANYONE very happy to take home less than half of what they make, at any level.

The positive of the TP is that they have gotten the public and the elected officials to address the issue of deficits. That can never be a bad thing.

 

The negative is that they think that is the ONLY solution . Austerity is not always wise.

One part of the problem.

Yet the central government was given certain powers and redistribution of wealth was not one of them.

It was to help create wealth, not take it from one and give it to another.

 

It was to help create wealth

 

Don't see that anywhere in the constitution either.

This isn't Germany, thank God.

 

You're not going to find ANYONE very happy to take home less than half of what they make, at any level.

 

I threw the Germany thing in there to show that US tax rates are not high when you compare them to other countries. I hear people saying the US isn't competitive or that our tax rates stifle growth and that just isn't true. As to paying 50% tax at $2M a year, if I made that income and paid those taxes I would still be a very, very happy camper.

I threw the Germany thing in there to show that US tax rates are not high when you compare them to other countries. I hear people saying the US isn't competitive or that our tax rates stifle growth and that just isn't true. As to paying 50% tax at $2M a year, if I made that income and paid those taxes I would still be a very, very happy camper.

 

I can tell you that the Germans I have interviewed are not happy at all with their tax rates. I will be there later this week, and I will ask a few more. In the 50's and 60's when their present structure was mainly put in place, Germany did not have many unemployed and the only immigration was to bring in workers for the large automobile manufacturers. In present day, there are many more unemployed, as the eastern bloc was brought into the social system while having never contributed. Also, the German government is now subsidizing Greece and Italy due to their financial insolvencies. Conclusion: People don't mind paying the taxes as much when they feel that they will see the benefit, but they mind a lot when they contribute and see their tax dollars going to those who have never contributed, to other countries who will never pay back, while at the same time see their own infrastructure crumbling. I don't think I would recommend the German model to support higher taxes right now. I also work with many Swedes, and I would quote the same story.

I threw the Germany thing in there to show that US tax rates are not high when you compare them to other countries. I hear people saying the US isn't competitive or that our tax rates stifle growth and that just isn't true. As to paying 50% tax at $2M a year, if I made that income and paid those taxes I would still be a very, very happy camper.

 

Sure it's true that our rates stifle growth. That's a no brainer.

 

No way you would be happy camper losing 50% OR MORE of your income. No way.

For better or worse, the country is getting what it wanted. The candidates won their seats on the strength of their far right principles, and they've done exactly what their constituency wanted. I did not, won't, will never vote for Rand Paul. But, I (for at least a short time longer), live in Kentucky and have to accept that he AND Mitch McConnell represent me up there in Washington. Like Jim Schue, I think Mitch McConnell (at this point) is actually the voice of reason for Kentucky in the Senate, and that's not a position I've often held, although I've voted for him several times...the lesser of two evils in most cases. I'm usually very happy that John Yarmuth represents me in the House, but I understand he was one to cast a Nay vote for the recent legislation, and although I agree with him in theory, that was no time to be taking the hard-line.

I can tell you that the Germans I have interviewed are not happy at all with their tax rates. I will be there later this week, and I will ask a few more. In the 50's and 60's when their present structure was mainly put in place, Germany did not have many unemployed and the only immigration was to bring in workers for the large automobile manufacturers. In present day, there are many more unemployed, as the eastern bloc was brought into the social system while having never contributed. Also, the German government is now subsidizing Greece and Italy due to their financial insolvencies. Conclusion: People don't mind paying the taxes as much when they feel that they will see the benefit, but they mind a lot when they contribute and see their tax dollars going to those who have never contributed, to other countries who will never pay back, while at the same time see their own infrastructure crumbling. I don't think I would recommend the German model to support higher taxes right now. I also work with many Swedes, and I would quote the same story.

 

I am NOT in favor of raising taxes. Of course the Swedes tell the same story as the Germans as the Americans and on and on it goes. Everyone wants more for themselves. That is clearly a no brainer. Our taxes are low and should be less of an impediment to growth than they were in years past. I don't want to raise taxes but I don't think they should be lowered either.

I am NOT in favor of raising taxes. Of course the Swedes tell the same story as the Germans as the Americans and on and on it goes. Everyone wants more for themselves. That is clearly a no brainer. Our taxes are low and should be less of an impediment to growth than they were in years past. I don't want to raise taxes but I don't think they should be lowered either.

You understand that individual income tax doesn't have close to the effect on growth as corporate income tax. The corporate rate at 35% is not one of the lowest in the world. As a matter of fact it's one of the highest. Lower capital gains and corporate income tax if you want to jump start the economy.

You understand that individual income tax doesn't have close to the effect on growth as corporate income tax. The corporate rate at 35% is not one of the lowest in the world. As a matter of fact it's one of the highest. Lower capital gains and corporate income tax if you want to jump start the economy.

.

 

 

I agree in your theory but do you think they will take that extra and invest or pocket it?

Santelli explains where we would be without the Tea Party when it comes to credit rating.

 

 

Until this government deals with the now unavoidable crisis of Medicare spending followed closely by Social Security outlays - the two drivers of future debt - the credit ratings will continue to slide. As Mr. Santelli says - we are on the wrong path.

 

The entire inside-the-beltway old guard - and that includes Mr. McConnell - needs to go. Tea Party, Zee Party, Bee Party - anyone new needs to get a good look at election time. The current two parties and the old-timers controlling them are failing to address the core issues to the issue of national insolvency.

You understand that individual income tax doesn't have close to the effect on growth as corporate income tax. The corporate rate at 35% is not one of the lowest in the world. As a matter of fact it's one of the highest. Lower capital gains and corporate income tax if you want to jump start the economy.

 

.

 

 

I agree in your theory but do you think they will take that extra and invest or pocket it?

 

Lack of dollars to grow business is not an issue. Most larger companies are sitting on piles of cash. I believe I saw a number the other day that over 70% of the S&P 500 reported profits. Companies are making money but not growing and not hiring.

 

I repeat, taxes are not an issue in this economy.

I am both stunned and amused by your repeated mantra... "Taxes are not an issue" when credible business people on this board have told you that taxes, (not just current taxes, but the looming spectre of increasing taxes to cover increased spending) and the expenses to cover Obamacare have been clearly foretold by this administration and will be a big problem if enacted. The spending done by Mr. Obama and the democrat led Congress has ensured a need for increased taxation, possibly at crippling levels. The first two years in power, this administration made it clear that "big corporations" are the bad guys, the rich aren't doing their fair share, and all the president's wonderful hope and change programs could be funded by them alone.

 

There's not a corporate officer worth his or her salt that doesn't plan for the next five to ten years of their business. There is absolutely zero point in expanding business and adding new jobs today when the government has assurred us they will add layers of increased expenses, higher taxation and reduced exemptions tomorrow.

 

At the very core, the threat of increased taxation by an administration clearly not friendly to business and individual wealth building has established an atmosphere of uncertainty for corporations and businesses of all sizes. This administration has been a train wreck at the worst possible time for pulling our nation out of its economic woes.

 

Whether anyone likes the Tea Party or not, it's time to cut spending on nonsense and wasteful programs. This isn't austerity, it's what used to be called common sense.

Edited August 9, 201115 yr by Fastbreak

I am both stunned and amused by your repeated mantra... "Taxes are not an issue" when credible business people on this board have told you that taxes, (not just current taxes, but the looming spectre of increasing taxes to cover increased spending) and the expenses to cover Obamacare have been clearly foretold by this administration. The first two years in power, this administration made it clear that "big corporations" are the bad guys, the rich aren't doing their fair share, and all the president's wonderful hope and change programs could be funded by them.

 

There's not a corporate officer worth his or her salt that doesn't plan for the next five to ten years of their business. There is absolutely zero point in expanding business and adding new jobs today when the government has assurred us they will add layers of increased expenses, higher taxation and reduced exemptions tomorrow.

 

At the very core, the threat of increased taxation by an administration clearly not friendly to business and individual wealth building has established an atmosphere of uncertainty for corporations and businesses of all sizes. This administration has been a train wreck at the worst possible time for pulling our nation out of its economic woes.

 

Whether anyone likes the Tea Party or not, it's time to cut spending on nonsense and wasteful programs. This isn't austerity, it's what used to be called common sense.

 

 

As a businessman I am here to tell you that this is all nonsense. There is only one reason why business is not expanding today and that is demand. The notion that someone wouldn't expand their business to meet a demand because the tax on their profits might go from 35 percent to 39 percent is silly beyond belief. There is a great deal of uncertainty today over the future and that uncertainty puts a huge dampener on the economy and business plans, but that uncertainty is much more about future demand, rather than future tax rates. We have a lot of problems with our tax structure but it is not that corporations and the wealthy pay too much. The corporate tax rate is too high, but corporations pay too little in tax. We need to eliminate most of the corporate tax exemptions and lower the rate. It should not be a one for one swap as insisted on by the Republicans and the Tea Party. It should result in a net increase in corporate taxes paid. This would have the added benefit of focusing investment where it can make the most money, rather than where it can avoid taxes. On individual taxes there was a graph circulating last week that showed that the very richest people in the country pay federal taxes of just over 18 percent (down from about 30 percent 20 years ago). A typical middle class person, say a household gross income of $100,000, pays more like 28 or 29 percent. That is not an equitable tax structure and an increase in taxes for higher incomes is an essential part of the solution to our long term debt problem. I am in favor of cutting out wasteful programs. I am in favor of bending the curve on Medicare, Medicaid and social security, but the Tea Party would drive us off a cliff.