The Alternative Minimum Tax...

[ColdWizard]

At least you're not this guy.

[Dinner]

I'm not sure you even know what the terms you're using mean, you ****ing idiot.

Marginal - Top tax rate before any deductions, credits, or other reductions

Average - the average of the marginal tax rates paid (I.E. so much at this marginal rate, so much at that marginal rate all added up and averaged to get an average tax rate)

Effective - Average tax rate after deductions, credits, etc...

Stop being a whiny little ***** who throws invectives around and try to be nice for at least the rest of the day.

[Dinner]

Wow, you ******, it's almost as though you don't know that the AMT disallows all of the deductions you're referring to.

Yes, I do indeed know what the ATM is though we were talking about general terms remember? You claimed I didn't know the meaning of terms, terms which are used for other things including people who don't pay the ATM.

[KrazyHorse]

Now explain the deductions you think reduce marginal rates.

[KrazyHorse]

Yes, I do indeed know what the ATM is though we were talking about general terms remember? You claimed I didn't know the meaning of terms, terms which are used for other things including people who don't pay the ATM.

People who don't pay the AMT are generally faced with far lower marginal rates, you ****ing idiot. Which is why we have to worry about their incentives a lot less. The exception is for people who are in the low income benefit trap (where phaseouts of transfers and benefits lead to high implicit marginal tax rates)

Also, "AMT".

[Dinner]

For the ATM they don't since it's an alternate system but for most people, yes, deductions effectively reduce your earned income thus meaning less money is hit by the higher marginal rate. This means their effective tax rate is reduced. Happy?

[Dinner]

So much for you ditching the potty mouth for part of one day.

[KrazyHorse]

At least you're not this guy.

Yeah, that eems to be a combination of NY state not allowing a deduction for business interest payments for high earners (!), a high degree of leverage in his business (which being real estate is normal) and the AMT disallowing his deduction for state and local taxes.

[Dinner]

KH still doesn't get that he asked me to define several general terms so I gave him general answers. Well, **** it.

[KrazyHorse]

For the ATM they don't since it's an alternate system but for most people, yes, deductions effectively reduce your earned income thus meaning less money is hit by the higher marginal rate. This means their effective tax rate is reduced. Happy?

Once more demonstrating that you are interchanging "marginal" (which I asked the question about) and "effective" (which you answered).

You are one stupid mother****er.

[Dinner]

I just explained the difference, mother ****er. Now you're just trying to be a ***** by deliberately misconstruing what I said.

Look, I'm sorry you're having yet another bad day which makes you want to act like an abusive **** but do us all a favor and stuff it. If anyone is being stupid here it is you for deliberately ignoring what the other person said, jack ass.

[KrazyHorse]

So you admit that you have no idea what deductions reduce your marginal rate?

[Dinner]

Marginal - Top tax rate before any deductions, credits, or other reductions

Average - the average of the marginal tax rates paid (I.E. so much at this marginal rate, so much at that marginal rate all added up and averaged to get an average tax rate)

Effective - Average tax rate after deductions, credits, etc...

Stop being a whiny little ***** who throws invectives around and try to be nice for at least the rest of the day.

Quoted for KH since he's apparently unable to read. The f'ing twat.

[Dinner]

For the ATM they don't since it's an alternate system but for most people, yes, deductions effectively reduce your earned income thus meaning less money is hit by the higher marginal rate. This means their effective tax rate is reduced. Happy?

Another one quoted so the **** can have a second chance to read it.

[KrazyHorse]

Marginal tax rates are a big meh. Effective/average tax rates are far more important especially since the tax code has a million and one ways to lower your marginal rate so stop whining.

Still waiting on your explanation of what deductions reduce marginal rates.