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CHRISTOPHER TAYLOR'S BOOKS

Thursday, April 21, 2011

PICTURE OF THE DAY


Like a big middle finger, there's the facts for people who keep yelling "tax the rich more." The money ain't there, its in the middle class and that's where the taxing will take place, if any is raised.

2 Comments:

Anonymous eric said...

Not that it makes a substantial difference, but it's worth noting that this chart displays Adjusted Gross Income, which is income after you take tax related deductions. It wouldn't be very unusual for a person with a real income of $100K to show $50-$60k of AGI on their taxes. A single person earning $45K who doesn't itemize and only takes the standard deduction of $5800 would show an AGI of under $30k.


Just something to consider. Assuming this chart is showing the potential taxable income for various income groups, it might be a good idea to shift all the columns one income group to the right if you want to get an idea for how it effects real earnings.

And even then, it's worth noting that what they are calling 'taxable income' probably includes a lot of money that is currently sheltered from taxes that goes into Medical Savings accounts, education savings for kids and grandkids, and most importantly, retirement savings. A family in their 50's with an income in the $80k to $100K range and kids about to start college might be socking away as much as $20-$25K per year in tax sheltered savings for these things... if the government decides to tax those savings, they are going to wreck long term retirement, education, and healthcare planning for millions of families and individuals.

9:24 AM, April 21, 2011  
Anonymous Christopher Taylor said...

And even with the shift, that's still middle class. I mean, sure, 75 grand a year sounds like an awful lot of money to someone like me but its chicken feed in Manhattan.

10:19 AM, April 21, 2011  

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