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Or that the extremely wealthy make most of their money via capital gains.

by farrel 13y ago

alexeisadeski3 13y ago
The capital gains rate is 23.8% for those with high income.
- spikels 13y ago
  That's just federal capital gains tax. You also need to consider state taxes. In California you pay ordinary income tax rates on capital gains of up to 13.3% for people with incomes over a million dollars. So the total tax on a capital gain in California can be as high as 37.1%.
  - alexeisadeski3 13y ago
    And likewise with income taxes. The paper cited I the source article accounts only for fed taxes. Cali income tax would toss another 8-10% on top of that 33.x% number. Low tax America! Well, I guess it is low tax it you're not rich, haha.
    - spikels 13y ago
      In California the highest marginal total income tax rate is 56.7%. While this is for incomes over a million dollars, if you make around $100,000, you face a marginal tax rate of 52.6%. I'm sure there are places with even higher marginal taxes but these don't seem low. BTW - What is really fucked up is the way very poor people face the very highest marginal tax rates due to means testing of various programs (often over 100%) but that's another story.
      - aidenn0 13y ago
        It has been as high as around 90%: http://en.wikipedia.org/wiki/File:Historical_Mariginal_Tax_Rate_for_Highest_and_Lowest_Income_Earners.jpg http://en.wikipedia.org/wiki/File:Historical_Mariginal_Tax_R...
        alexeisadeski3 13y ago
        There were loads of loopholes back then. And before someone responds with, "there are loopholes now too, har har!": No, there really aren't those kinds of loopholes anymore. The 90% income tax existed in name only, whereas today there actually are people paying ~50% income tax in the US.
walshemj 13y ago
which is the elephant in the room when income tax rates are discussed particularity in the uk where the line is "on noes entrepreneurs will flee if the highest rate income tax goes from 45 to 50". NO real entrepreneur cares about his salary after a certain point its all about capital gain - the fantasists and Muppets on dragons den are not real entrepreneurs. That is the trouble thease days where the political class go from uni straight into the political machine with no out side job (until they get a few director ships or quangos)

Or that the extremely wealthy make most of their money via capital gains.

by farrel 13y ago

Or that the extremely wealthy make most of their money via capital gains.

alexeisadeski3 13y ago

The capital gains rate is 23.8% for those with high income.

spikels 13y ago
That's just federal capital gains tax. You also need to consider state taxes. In California you pay ordinary income tax rates on capital gains of up to 13.3% for people with incomes over a million dollars. So the total tax on a capital gain in California can be as high as 37.1%.
- alexeisadeski3 13y ago
  And likewise with income taxes. The paper cited I the source article accounts only for fed taxes. Cali income tax would toss another 8-10% on top of that 33.x% number. Low tax America! Well, I guess it is low tax it you're not rich, haha.
  - spikels 13y ago
    In California the highest marginal total income tax rate is 56.7%. While this is for incomes over a million dollars, if you make around $100,000, you face a marginal tax rate of 52.6%. I'm sure there are places with even higher marginal taxes but these don't seem low. BTW - What is really fucked up is the way very poor people face the very highest marginal tax rates due to means testing of various programs (often over 100%) but that's another story.
    - aidenn0 13y ago
      It has been as high as around 90%: http://en.wikipedia.org/wiki/File:Historical_Mariginal_Tax_Rate_for_Highest_and_Lowest_Income_Earners.jpg http://en.wikipedia.org/wiki/File:Historical_Mariginal_Tax_R...
      - alexeisadeski3 13y ago
        There were loads of loopholes back then. And before someone responds with, "there are loopholes now too, har har!": No, there really aren't those kinds of loopholes anymore. The 90% income tax existed in name only, whereas today there actually are people paying ~50% income tax in the US.

walshemj 13y ago

which is the elephant in the room when income tax rates are discussed particularity in the uk where the line is "on noes entrepreneurs will flee if the highest rate income tax goes from 45 to 50". NO real entrepreneur cares about his salary after a certain point its all about capital gain - the fantasists and Muppets on dragons den are not real entrepreneurs. That is the trouble thease days where the political class go from uni straight into the political machine with no out side job (until they get a few director ships or quangos)