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Power-User

Join Date: Oct 2008
Location: Meherrin Virginia
Posts: 319
Good Answers: 6

Please Cut My Pay!

09/03/2009 10:25 AM

My understanding of the proposed tax structure is that instead of having a progressive tax we will have a progressive tax, with a progressive tax plus, kicking in at $250,000.

I used to say that I would love to pay the tax on one million dollars. I am no longer of that opinion. Amazing what inflation will do.

At any rate, if you institute a progressive tax plus there will have to be some magical point where someone will actually have to loose money to get a pay raise. This will be a lot like the situation where being married cost more in taxes for some people.

I hate to be critical, realizing that we have been in the midst of a huge economic downturn and understanding that at times "don't just do something, stand there" doesn't work, I have to wonder at the arithmetical ability of the present administration. The first most obvious clue that I got was when I realized that my retirement pay had increased. Knowing this was not a fact a little checking shows that the people in power figured if they reduced withholding then more would be available to the economy. They have no intention of reducing the amount owed to them next year, with my limited knowledge of "maths" or "arithmetic's" (had to throw that in there to see what the spell checker will come up with) that tells me we are collectively in for a surprise next year at tax time.

When the fact came out that there was a slight error in the deficit projection of 1 or 2 trillion dollars, then it became obvious to me that the senator that was famous for the statement "a billion dollars here and a billion dollars there, pretty soon you are talking some real money" was in fact right in his element.

Thats the rant, the question is how would you avoid this situation of having to take a pay cut to get a pay raise. Or do you think it isn't possible?

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Guru

Join Date: Aug 2009
Location: Glen Mills, PA.
Posts: 2385
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#1

Re: Please cut my pay!

09/03/2009 11:22 AM

It is not a lump sum kicker at $250,000, it is simply an additional bracket, i.e. the person receiving $250,000 will not pay the same as someone receiving $250,000,000.

There will not be a case where the take home pay will be reduced because of a raise.

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Anonymous Poster
#2

Re: Please Cut My Pay!

09/03/2009 11:59 AM

Be a bit more bipartisan in placing blame, otha! After all, it was Dick Cheney who told then-Treasury Secretary Paul O'Neil, "You know, Paul, Reagan proved deficits don't matter." But then again, Senator Dirksen (who allegedly uttered the "real money" comment, also placed an (R) after his name.

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