Flat tax is going to pass in both Iowa House and Senate
- Thread starter Jimmy McGill
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Uhhh… yes? That’s top 5% of household incomes in the US, let alone what it is in Iowa.
Im referring to 25% of AGI. So yes, as with all of our taxes, AGI is adjusted gross income so less than we actually make yes. All of us.
So sure 25% of 1 million requires an actual gross income of higher than a million to get to an AGI of 1 million. What is your point?
Here is the graph again. So you'll concede that taxing that group at higher than 25% is unfairly confiscatory?
Federal income tax is progressive as a whole, but less so at top
www.pewresearch.org
Ya, penalize hard work, knowledge and success, a great recipe for destroying innovation. Let's be clear, the dems only want to stick it to successful Americans because they are jealous and most libs are lazy. (Hey rich guy, you worked 80 hours a week invented products that make everyone else's life easier, now give me your hard earned money.
I am successful. More than I ever really thought I would be to be honest. I’m not jealous of anybody’s income.
But I don’t want to live in a craphole. I wish most other Iowans were the same. But apparently I’m wrong.
What's stopping @joelbc1 is that he doesn't really want to send the government more money. He either wants just you to send more or you and he both to send more. It isn't about him paying his own share that he believes is fair. Its about him getting everyone else's money for projects and causes he thinks we should spend money on. His money alone doesnt move the needle. That is always the motivation.
We might be talking past each other. Are you talking about a 25% top marginal rate or a total federal tax rate on the wealthiest of 25%? If it’s the former you’re talking about an enormous - HUGE - tax cut for the very wealthiest people.Im referring to 25% of AGI. So yes, as with all of our taxes, AGI is adjusted gross income so less than we actually make yes. All of us.
So sure 25% of 1 million requires an actual gross income of higher than a million to get to an AGI of 1 million. What is your point?
Here is the graph again. So you'll concede that taxing that group at higher than 25% is unfairly confiscatory?
Federal income tax is progressive as a whole, but less so at top
Huge part of the reason. Not enough revenue and no will to cut spending. If you cut services you get voted out.
Well yeah, no kidding. We live in a society and we should all be thankful it’s not just my income supporting our roads, bridges, and educating our children because it wouldn’t be enough.
Im talking not about the top marginal tax rate. I am talking about an effective tax rate on AGI. Like the graph says.
As you know, the effective tax rate is what a person's total tax bill is as a percentage of their AGI. (So i paid 250k in federal tax on an AGI of 1 million as an example). Not what the percentage levy is of the top income tax rate of their top bracket. The marginal rate. Which is 37% IIRC.
The point isnt that we shouldnt all pay tax. The problem comes in when people complain certain people pay too little.
Then the retort always is, why doesnt the person complaining about the low tax rates just pay more of their own income?
They dont want to do that. They want us ALL to pay more. Which is illustrative of their way of thinking. This then explains why they themselves dont pay more. Is isnt about them paying what they think they should. It's about them wanting YOU to pay what they think YOU should. I find that immoral.
Not so Gus. I will send them what is required…”render unto Caesar what is Caesar’s….” That is NOT the issue. It is pure pandering and lunacy to not require someone like me to not “owe” the state one cent of income tax when I am acquiring income at levels I scarcely met during my working days! It allows me to contribute more $) to other charities J favor, though. But I just don’t understand the reasoning here…it’s not like I am struggling day to day to make ends meet. Most retirees I know are in a similar boat as I.
The question is, I guess, how much is enough? Someone should be able to say that there is a top percentage one should pay. No matter what their income is. Leftists dont seem to know what that is.
When the man on the street is confronted with facts, as I have laid out in the chart, they are shocked as to the rates real people actually pay. Not the classic, probably imaginary number, Warren Buffets secretary supposedly pays.
And they should be because they worked and did their part. Paid their tax. Did the responsible thing for 3-4 decades most likely. There should be breaks for seniors. Everyone complains about people leaving Iowa. This is designed to keep them from leaving Iowa by giving them another, of many, reasons to stay. You could always move to the East and they will take your money.
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I really didn't want this to turn into a shitshow. I encourage folks to just think about kindness to all.
Who complains about seniors leaving Iowa? The only time I hear people complaining about people leaving it’s the brain drain.
I think we think about this differently and honestly that’s okay.
You look at this as a moral issue. I don’t see any morality in the taxes one pays and honestly I don’t know enough to say what rates people should pay. I’m not an expert in it and I’ll never profess to, especially relating to the federal level.
I grew up in a small town. I built grain bins around Iowa for 5 years or so during and after college and I’ve been to hundreds of small communities around here. Maybe my perspective has changed but man these small towns seem to be getting smaller and shabbier every year.
I don’t think you can cut taxes enough in Iowa to appeal to people outside of here to come, especially outside of the cities. We don’t have much here and that’s okay. But we used to really pride ourselves on investing in the next generation and caring about our neighbors. Taxes aren’t everything but they are something.
You seem to think I’m some hardcore lib and I think if we sat down we’d probably agree on a lot more than you’d think. Maybe I’m just getting nostalgic about my youth. But I also don’t want State Center, Jefferson, and Griswold to be absolute backwoods crapholes. when I go back to my hometown man the state of it sometimes bums me out.
Medicare is funded about 90% through payroll taxes. A small percentage is from social security.
You realize that's not how things work, right? It absolutely amazes me you believe the things you type. You literally aren't capable of learning.
That's why I donate to charities, I don't consider the government a charity. The government is more of a grifter than a charity.
No that is not how things work. Everyone owes taxes to support society, however, no one should be penalized for making money.
What do you believe the highest tax rate should be as a percentage one should have to pay regardless of income?
We will have to agree to disagree there. For example, who would provide vocational rehabilitation services for the disabled if the government was not mandated to do so? Grifter charities? It goes both ways.
Dude...this is FAR more complex than what your brain is telling you it is. People have tried to explain to you how the wealthy skirt paying taxes, the advantages they have in doing it, but you don't care. Hell, you think Donald Trump is one of those people who actually EARNED whatever wealth he has. The rules for people like him are vastly different than they are for the middle class. It sucks that you don't know this.
I know someone who works for the social security administration in Michigan. This once Democrat changed to Republican many years ago changed primarily because of repeated witnessing of the following:
The amount of Shaniqua's in their late 20's, who roll in with their big nails, pink sweat pants, and glitter cased iPhones, copping an attitude because they had to wait for 20 minutes for their meeting, and complaining because they think they should be getting more than the $5,000 a month they already get because they have 5 kids with 5 different dudes.
Billions upon billions of our tax dollars each year go to that exact situation.
The amount of Shaniqua's in their late 20's, who roll in with their big nails, pink sweat pants, and glitter cased iPhones, copping an attitude because they had to wait for 20 minutes for their meeting, and complaining because they think they should be getting more than the $5,000 a month they already get because they have 5 kids with 5 different dudes.
Billions upon billions of our tax dollars each year go to that exact situation.
There was nothing wrong with the tax code before she started messing with it. This is a thank you for her donors. She is not what we need in government
Why should there be “breaks” for seniors? Are we an endangered species or something? Hell, we already get 10% discounts off of meals! So a “senior” shouldn’t have to pay income taxes to a state whose services he/she use essentially for free?
Gus….your logic/thought process here just escapes me totally. There is no damn reason in God’s green earth that I should be exempt from an income tax if I am drawing income…
The system was designed to keep the wealthy from gaining too much control. He who has more money controls the game. Or so the theory.
Iowa
- How much you need to be in the top 5%: $210,930
- Average household income for the top 5%: $352,704
- Median household income for the entire state: $65,429
- How much more the average 5% makes than the median: 5.4x
How Much You Need To Be in the Top 5% in Every State
How much do you think you need to be rich? See how much the top 5% earn in every state.
There’s always been a cap on SS tax ($168k). I would rather have a cap than uncapped, after $200k of AGI you are taxed an additional .8%.
If I trusted how the government would spend the money I would be open to the uncapped discussion. Why should a person be punished if makes more and works harder?
What needs to be investigated is how public servants make $175-225k a year and are worth $200m. That needs to be reformed, not the tax code.
I also laugh at "working harder". You have no idea how some people work hard just to make their rent
All the flat tax plans I’ve seen eliminate existing exemptions (understanding that is the source of tax code length and complexity).
The old Neal Boortz flat tax (Fair Tax?) plan had a huge personal exemption that was to be ‘pre-paid’ to everyone. He was pushing universal income before I heard it anywhere else, he just did it as part of the tax reform.
