Top Of My Head

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Tag: taxes (page 3 of 4)

Tax Rates 2000 – 2011

Below are all of the tax rates, along side their respective income levels.  I found the data at Money Chimp, so you can review it for yourself.  Remember, all these tax rates are on NET, not GROSS income.  For those that do not know the difference, Gross is what you earn and Net is what you actually bring home, after all deductions.

2000 Tax Rates:

Income

Beginning Salary Ending Salary Tax Rate

$0.00

$26,250.00

15.0%

$26,250.00

$63,550.00

28.0%

$63,550.00

$132,600.00

31.0%

$132,600.00

$288,350.00

36.0%

$288,350.00

 above

39.6%

2001 Tax Rates:

Income

Beginning Salary Ending Salary Tax Rate

$0.00

$27,050.00

15.0%

$27,050.00

$65,550.00

27.5%

$65,550.00

$136,750.00

30.5%

$136,750.00

$297,350.00

35.5%

$297,350.00

above

39.1%

2002 Tax Rates:

Income

Beginning Salary Ending Salary Tax Rate

$0.00

$6,000.00

10.0%

$6,000.00

$27,950.00

15.0%

$27,950.00

$67,700.00

27.0%

$67,700.00

$141,250.00

30.0%

$141,250.00

$307,050.00

35.0%

$307,050.00

above

38.6%

2003 Tax Rates:

Income

Beginning Salary Ending Salary Tax Rate

$0.00

$7,000.00

10.0%

$7,000.00

$28,400.00

15.0%

$28,400.00

$68,800.00

25.0%

$68,800.00

$143,500.00

28.0%

$143,500.00

$311,950.00

33.0%

$311,950.00

above

35.0%

2004 Tax Rates:

Income

Beginning Salary Ending Salary Tax Rate

$0.00

$7,150.00

10.0%

$7,150.00

$29,050.00

15.0%

$29,050.00

$70,350.00

25.0%

$70,350.00

$146,750.00

28.0%

$146,750.00

$319,100.00

33.0%

$319,100.00

above

35.0%

2005 Tax Rates:

Income

Beginning Salary Ending Salary Tax Rate

$0.00

$7,300.00

10.0%

$7,300.00

$29,700.00

15.0%

$29,700.00

$71,950.00

25.0%

$71,950.00

$150,150.00

28.0%

$150,150.00

$326,450.00

33.0%

$326,450.00

above

35.0%

2006 Tax Rates:

Income

Beginning Salary Ending Salary Tax Rate

$0.00

$7,550.00

10.0%

$7,550.00

$30,650.00

15.0%

$30,650.00

$74,200.00

25.0%

$74,200.00

$154,800.00

28.0%

$154,800.00

$336,550.00

33.0%

$336,500.00

above

35.0%

2007 Tax Rates:

Income

Beginning Salary Ending Salary Tax Rate

$0.00

$7,825.00

10.0%

$7,825.00

$31,850.00

15.0%

$31,850.00

$77,100.00

25.0%

$77,100.00

$160,850.00

28.0%

$160,850.00

$349,700.00

33.0%

$349,700.00

above

35.0%

2008 Tax Rates:

Income

Beginning Salary Ending Salary Tax Rate

$0.00

$8,025.00

10.0%

$8,025.00

$32,550.00

15.0%

$32,550.00

$78,850.00

25.0%

$78,850.00

$164,550.00

28.0%

$164,550.00

$357,700.00

33.0%

$357,700.00

above

35.0%

2009 Tax Rates:

Income

Beginning Salary Ending Salary Tax Rate

$0.00

$8,350.00

10.0%

$8,350.00

$33,950.00

15.0%

$33,950.00

$82,250.00

25.0%

$8,250.00

$171,550.00

28.0%

$171,550.00

$372,950.00

33.0%

$372,950.00

above

35.0%

2010 Tax Rates:

Income

Beginning Salary Ending Salary Tax Rate

$0.00

$8,375.00

10.0%

$8,375.00

$34,000.00

15.0%

$34,000.00

$82,400.00

25.0%

$82,400.00

$171,850.00

28.0%

$171,850.00

$373,650.00

33.0%

$373,650.00

above

35.0%

2011 Tax Rates:

Income

Beginning Salary Ending Salary Tax Rate

$0.00

$8,500.00

10.0%

$8,500.00

$34,500.00

15.0%

$34,500.00

$83,600.00

25.0%

$83,600.00

$174,400.00

28.0%

$174,400.00

$379,150.00

33.0%

$379,150.00

above

35.0%

 

Economics

Let’s discuss how to pay a debt.

  1. You earn revenue – that’s money coming in.
  2. You send your debtor a check for what you owe.
  3. Repeat steps 1 and 2 until debt is paid.

See how easy that is?

Now, here’s a little tip to make it even easier:  Don’t quit your job while still trying to pay your debt.  In other words, don’t lower your revenue, because if you lower your revenue, you will have a harder time meeting all of your obligations, including your debt repayment.

Let’s move this out to the government:

  1. Receive taxes.
  2. Send checks to debtors.
  3. Repeat steps 1 and 2 until all debts are paid.

To pay the debt off faster, cut spending.  To not pay it off at all, cut revenue.

That’s what the Republicans want to do, they want to cut our revenue when we can least afford to do so.  They are holding the debt ceiling hostage because they don’t want to raise the taxes on the richest people in our nation from 35% to 39.6%.  This isn’t going to raise your taxes or even my taxes.  I’ve all ready discussed in an earlier post what will happen if we default.

Tomorrow, I’m going to post the tax rates over the past ten years.  Remember, these aren’t rates on your GROSS salary, they’re on your NET.

 

Jobless Recovery

To understand why we are having a jobless recovery, you must understand economics.  Unfortunately, most people in this country do not really understand economics.  So, here’s a very brief explanation.

Our economy is consumption driven – the old supply and demand.  Let’s say I own a widget factory and I make one widget a day – 5 widgets a week.  I send my widgets to the marketplace and every week, I sell all of my widgets.  But, one week, I notice that there are still 5 people in line wanting to buy my widgets.  If I could make more widgets, I’m certain that I could sell all of them, as well.

So, I return to my factory, and hire a person to help me make widgets.  I pay him an hourly wage that pretty much leaves me with most of the profit – this is MY factory and these are MY widgets and if he was bright, he could start his own widget factory.  This is America after all.

Now,  because there are two people building them, I can make and sell ten widgets a week.  Some time goes by and word gets out that I make the best widgets.  Now, I notice that there are three people standing in line when my widgets are sold out.  So, instead of hiring someone new, I make my one and only employee a salary employee (which means I don’t have to pay him overtime) and I make him work longer hours to make those extra three widgets.  Since I don’t have to pay him overtime, I’m still making an enormous profit.

This is how companies work.  This is capitalism, admittedly, at its very basic level, but you get the idea.

If the economy falters and I stop selling 13 widgets a week, I’ll cut my employee’s job.

If I discover that I can outsource widget making to China or Taiwan, bye bye employee.

And, guess what, if the government cuts my taxes, I’m not going to use that money to build another factory (creating new jobs) or hire employees in my old one, I’m going to keep it.  I deserve it.  I came up with this idea for a company and I built it.  And, that’s why giving tax breaks to the richest in this country, isn’t going to create jobs.

If there is not consumption on the bottom and middle rungs of our country, there is no reason for companies to hire.  Cutting the taxes of the rich does not cause jobs to magically appear.  It just makes the rich, richer.  And, because that revenue needs to be made up in some manner, it makes the poor, poorer.  Cutting things like health care for the poor to give tax breaks to the rich is absolutely the most despicable thing we could do in this country.  Cutting school lunches for poor kids or the breakfasts before school, where this might be their only decent meal – and give a 10% tax break to the rich who can afford to pay their taxes under the guise that this will create jobs is irresponsible and ridiculous.  But, that’s what the Republicans are selling you – a tax break for those at the top who don’t need one.

Are there people in this country that don’t pay any money in taxes?  Yes, yes there are and if the Republicans have their way, more of them will be rich than poor.

Republicans

Republicans should be totally ashamed of themselves.  In the states where Republicans rule, the order of the day is attack public workers and cut funding for birth control or let’s all carry guns and hate gays.

In Congress, the order is let’s not deal with the President on the debt ceiling (or anything else for that matter).  They’ve learned that a failing Congress usually gets Republicans elected.  If they “do nothing”, they can blame President Obama.  Except this time, they’re wrong.  Failing to act can mean that the US will default on its loans.  This not only ruins our economy, but it can take down the rest of the world.  Think about it, Europe is panicking because Greece might default and Greece is only worth 2% of the European economy.  Can you imagine what would happen in the world if the US defaults?

Worse than that, President Obama has handed the Republicans nearly everything they want – including major cuts to Social Security and Medicare – and they want to take their football and go home.  They are playing politics with our futures and the futures of our children and they’re turning their backs on $3 trillion dollars in spending cuts.  $3 trillion.  And, all because they want to protect the richest people in the nation.  You know, the ones that have summer homes and take expensive vacations, while the rest of us are struggling to pay our mortgages.  The ones who can afford to take Paul Ryan out for dinner and order two bottles of $350.00 wine, while complaining that liberals don’t like rich people.

Even Warren Buffet thinks the rich don’t pay enough in taxes.  I’d like to take this opportunity to point out that the rich and wealthy are paying the lowest amount in Federal income taxes since the 1950’s and, yet, they aren’t hiring.  Imagine that.  The real problem in this country are companies that make huge profits and do not hire anyone, along with the ones that close American plants and open ones overseas.

Meanwhile, Republicans are attacking Planned Parenthood – God forbid a woman is able to buy birth control at a low price – and Presidential Candidates are signing pledges against individual rights.  Lincoln freed the slaves, but he would never get elected now if he supported marriage equality.  Roosevelt supported the protection of our national parks and resources, but Republicans would kick him out of the party.  Nixon supported clean air and water and created the EPA, but these Republicans of today consider it a hindrance to make sure we have clean air to breathe and good water to drink.  Even Reagan raised taxes – twice – but the Republicans of today have rich donors to their campaigns to support.

Republicans have a long and proud history of doing good in this nation, but this modern breed of them are a huge disgrace to the Republican past.

What happened to the Republican Party that supported individual rights?  Where did the reasonable Republicans go?  They certainly aren’t here.

Jobs

Newt Gingrich posted on Twitter: “When will President Obama recognize his big govt policies don’t work?”

Our “big government” is the smallest it’s been for years. Obama’s policies are good for the country, not bad. The Republicans can say they’re against big government, but why aren’t they cutting the money we give to to oil companies?

Then, he posted: “Jobs numbers are also further proof that tax increases as part of a debt ceiling deal are unacceptable.”

No, Newt, they’re not. They’re further proof that unskilled workers and middle-management can’t find jobs. It is further proof that if you can’t sell your house to move to a new location, you’re going to stay unemployed. If you have skills and, especially if you have a college education, you can find a job right now in nearly any market. You just have to have the right skills and be in the right place.

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Obama’s Big Mistake

By offering cuts to Social Security and Medicare in exchange for a rise in tax revenues, President Obama is making a huge mistake.  There are a lot of people out there who will be relying on both Social Security and Medicare for their retirement needs.  We will have to deal with them later and that is a mistake.

As far as I’m concern, any spending cuts – which Obama has given in to plenty – that do not come with a raise in taxes for the wealthy are unacceptable.  We’re going to leave those who can ill afford it vulnerable and we’re already rewarding those who caused this mess in the first place.  It’s time to hit the fancy bankers and CEOs who have laid off their fellow Americans in the pocketbook.  If we tax the hell out of them, maybe they’ll start hiring to avoid paying taxes.

We, also, need to cut every subsidy for nearly every corporation – especially oil.  But, that’s a discussion for another time.

Cantor’s Running

Eric Cantor has walked away from the Debt Ceiling talks. He doesn’t want to be in a position to actually admit that raising taxes must become a reality if we’re serious about paying off the National Debt.

Unfortunately for Cantor and the other Republicans, their grass roots base and their big business base are totally against tax raises. However; we can pay money we don’t have. Rehauling medicare and cutting social security and education outlays are NOT going to make us debt free.

Welcome to the real world.

Just like I can’t cut my hours and still pay my car loan, the goverment cannot cut taxes and pay off the debt. Our federal taxes are the lowest they’ve been in fifty years. Our regulations on businesses are the smallest they’ve been in forty years and, still our national debt grows and our jobless jumped 9,000 higher last month.

Cutting taxes – which is the big plan of the Republicans – isn’t going to build a strong economy so far.

Cantor needs to come back to the table and face the music.

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Quick Thoughts

Here’s some quick thoughts:

  1. The border between Israel and Pakistan should go back to the 1967 measurement.
  2. We should cut the $3 billion in aid to Pakistan TODAY.  Enough is enough.  They aren’t our friends and we should not be supporting their army.  $3 billion could do a lot of good in our OWN country.
  3. Speaking of domestic spending, our infrastructure is in need of a trillion dollars in repair.  If we concentrate on home projects, maybe we can get the economy back on track.
  4. Obama didn’t cause the economic crisis.  The stimulus has been helping the economy, but companies are making record high profits and not hiring people.  That’s (part) of the reason the recovery is so slow.
  5. Social Security can be saved and it isn’t broke.  Republicans want you to think the system is broke.  Fact is the surplus is in Treasury Bonds which are all coming due.  If people paid in on the whole salary, it would go a long way to pushing up Social Security’s solvency.  There’s more to it, but don’t be fooled by the doomsayers.
  6. We need to stop covering non-news in this country, but it won’t happen because crap sells.  I don’t care if the man sent an indecent picture of himself, as long as it wasn’t to a child.  I don’t care if the woman doesn’t really understand the ride of Paul Revere.  Neither of these things will bring jobs to our country. Covering this crap is just taking away from the real issues.
  7. And, finally, attacking gays and lesbians is NOT going to improve the economy.  It won’t fix Social Security.  GOP stop bringing it up.  We pay taxes, we serve in the military and we love our country.  We SHOULD NOT be treated unequally.  And, YOU should be more worried about what needs to be fixed that with whom I am sleeping.

Two Great Ideas

I was over at a friend’s house and I saw an episode of “Inspector America“.  One portion of the show dealt with the new straw that is being built into Lake Mead in Las Vegas.  I don’t know if you’re aware, but Lake Mead has lost more than 150 feet in the last ten or so years.  Las Vegas is running out of water.  Then, in a later segment, Host Timothy Galarnky visited the Edward C. Little Water Recycling Facility.  This facility is taking sewer waste and turning it into drinkable water.  Really.  Mr. Galarnky didn’t believe it himself, but he ran some tests and the water that came out the other end was safer to drink than the bottle water we purchase in the store.

Then, I was watching “In Wisconsin” on PBS and there was a segment about Barron County, WI.  They’re turning trash into energy.  First, the plant recycles what can be recycled.  Then, it uses magnets to remove the medal from trash.  Then, it burns the trash and turns that trash into energy.  The facility is called a Waste to Energy.  Whatever energy is not being used by the plant goes out onto the grid.  Think about that.  The people in Barron County pay less for energy because 25 years ago someone had the good sense to build a waste to energy plant.

So, here’s what I got from watching both of these shows, where we fail in this country is that we don’t see a good idea and expand on it.  If a politician wants to get MY vote in the next election, then she (or he) will support creating facilities like the Water Recycling and the waste to energy closer to my home.  We could use these ideas all over the country.  Why aren’t we doing more?

Oh, yeah, making these changes cost money and we’re out of money.  But, we’re finding money to finance two wars and we’re finding the ability to discuss tax breaks for the rich.  Granted these facilities aren’t going to pay for themselves overnight, but they are good investments in our future.

More about Taxes

I’ve been planning an article on how tax cuts for the wealthy are not good for America.  If you’ve been reading my blog, you know that I am against any budget plan that  includes an extension of the Bush tax cuts or lowers the tax rate.  But, enough about me.

I was checking out The Bilerico Project this morning, as I do, and I came across an article by Terrance Heath called the Thirteen Things We Know About Taxes.  I think you should head over there and check it out.  It is well written, well done and I couldn’t have said it better myself.

 

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