Fetterman drops a large truth bomb in the Dem toilet

[txdot-guy]

Originally Posted by Tiny

Please note that Russian oblasts (the equivalent of states) and cities do not levy income taxes. So 22% is the top rate.

For California, the top total rate is,

Federal: 37%
Obamacare tax charged on net investment income & Medicare tax charged on self employment income: 3.8%
State: 12.3%
State Mental Health Services Tax: 1%

Total: 54.1%

The Obamacare (Net Investment Income tax) and Mental Health Services Tax are both income taxes levied on high income taxpayers.

As a Texan you benefit from less regulation and lower taxes than California. If you made the $70,000 a year you mentioned in Texas, you'd require $90,000 to $95,000 in the PRC to have a similar standard of living. Or at least that's what ChatGPT tells me.

I believe state taxes, sales or income, are only deductible up to $10,000. If you're in the 54.1% bracket (federal + state) in California, that's not much.

But how many people in California actually pay that rate on their income. I’m guessing very few because when you start making that kind of money you are utilizing other forms of tax avoidance to keep that money from being classified as income.

People like to throw out a huge number as a scare tactic without any real context. The problem is not income tax but rather the way the system is rigged to allow really rich people to avoid paying even a fraction of the percentage of income that middle class people do.

https://budgetlab.yale.edu/research/...teractive-tool
Rich people often pay less in income taxes than middle-class individuals because a significant portion of their income comes from capital gains and investments, which are taxed at lower rates than wages. Additionally, the wealthy can utilize various tax deductions and loopholes that reduce their effective tax rate compared to that of middle-class earners, who primarily rely on wages for their income.

PS. The average household income in California is approximately $136,730, while the median household income is around $96,334.

[Tiny]

Originally Posted by txdot-guy

But how many people in California actually pay that rate on their income. I’m guessing very few because when you start making that kind of money you are utilizing other forms of tax avoidance to keep that money from being classified as income.

People like to throw out a huge number as a scare tactic without any real context. The problem is not income tax but rather the way the system is rigged to allow really rich people to avoid paying even a fraction of the percentage of income that middle class people do.



PS. The average household income in California is approximately $136,730, while the median household income is around $96,334.

I said top rate TxDot. If you read the whole thread you'll see I was discussing the redistributive policies favored by Democratic Socialists. That is, taking (or stealing depending on your point of view) from the rich and giving to the poor. You're doing your best to shift the conversation to the entire income spectrum.

Respectfully, Progressive Democratic politicians and news outlets try to brainwash you and apparently they're having some success. This is complete nonsense: "The problem is not income tax but rather the way the system is rigged to allow really rich people to avoid paying even a fraction of the percentage of income that middle class people do."

I linked to and discussed this piece already in Post 17:

https://www.davidsplinter.com/Toptax.html

Take a look at Figure 2 in the link. The really high income earners pay tax (federal + state + local) at much higher rates, 45% for the top 0.1% compared to around 16% or 17% for the middle quintile.

Good point about California. Yes, incomes are higher than Texas. I'd guess that the successful entrepreneurial class (an extreme example, Elon Musk) and highly skilled can make about as much before tax in Texas as California, which is why you see many of them moving. I've spoken with former Californians who don't fit into those categories who tell me they left on account of high home costs and fewer employment opportunties.