Kerry tax cuts: if you make 201k, do you get taxed...

[joshcryer]

...much worse than if you made 200k? In other words, if you make more than 200k, but not that much more, in the end you'd be worse off than if you made less than 200k?

[JuniorPlankton]

1. The difference will only be in the last thousand

The first $200K will remain the same.
this is how the tax brackets work.

[joshcryer]

2. Ahh, that makes sense and is fair. Thanks for the answer.

And sorry if this was in the wrong forum.

[ladjf]

3. The big question is did Kerry mean $200K taxable income

or gross income. If taxable income, the gross income could have been
250K or more before deductions. If that has been clarified, I haven't heard it.

[Misunderestimator]

4. I was curious about the same thing... I think it HAS to be net income.

Otherwise Schedule Cs where you make $250,000 on a business, but have only $50,000 profit would be unfairly taxed. I'm sure it's net.

[ladjf]

10. If so, Kerry should promptly clarify that.

[Misunderestimator]

11. Oh, and I should clarify, I really meant taxable gross when you file

your taxes, and not net pay. *doi*

[IIgnoreNobody]

13. We only tax 'taxable' income in the United States.

That's why it's called taxable income.

[ladjf]

14. Line 25 Federal Tax 1040 form "taxable income"

[Bandit]

5. You get taxed the same as in 2000 and through the ninties

You know when America was getting it's financial house in order.

[AP]

6. The difference in taxes for someone earning 201,000 is about 150 dollars.

Isn't the difference only 1.5% on the top rate?

It's not 201,000 dollar earners who will see their tax bill change by a great deal. It's 1,000,000 earners and 100,000,000 earners.

[AP]

9. I should note that even though the 201,000 earner only sees her...

...tax bill increase by only 150 bucks, she's still paying a marginal rate which makes her burden on the additional dollar greater than the 100 million earner.

Ie, it's ridiciculous to me that a 201,000 earner and 10,000,000 earner will pay exactly the same taxes on an additional dollar.

However, in absolute dollar terms, the 201,000 earners isn't seeing a huge jump in her total tax bill if Kerry's tax bill passes.

[BiggJawn]

7. Let me check with my Accountant...

That was quick. He said, and I quote: "What the fuck do YOU care? You're a LONG way from ever having to worry about that..."

My question is: If you're making 201 kilobucks, would you actually NOTICE the increased taxes over 200 kilobucks?

"How can a man who's warm understand a man who's cold?"-Ivan Denisovich

[trumad]

8. I'm fortunate enough to have a family member

who makes those kind of Benjmains. She tells me that the difference is nominal and that she can live with it....

Her average bi weekly check is 12 grand and Uncle Sam takes almost half leaving her with 6 or 7 grand take home. That's a lot but I still wince at how much they take.

[The Chronicler]

12. I wish I had to worry about it

200K a year is a shitload of money. A great number of people who make that have accountants etc and loopholes out the ass anyway.