The Alternative Minimum Tax...

[Dauphin]

Nope. The marginal rate is higher at £100,000 to £115,000 than at £150,000+.

[KrazyHorse]

Fact: most meaningful estimates of labor supply elasticity imply that the laffer curve's peak is somewhere in the high 50s. Utility maximization wil suggest marginal rates substantially lower than this, and longer-term disincentive effects on human capital accumulation will drop it even further.

[Ogie Oglethorpe]

Nope. The marginal rate is higher at £100,000 to £115,000 than at £150,000+.

Interesting.

[Jon Miller]

Fact: most meaningful estimates of labor supply elasticity imply that the laffer curve's peak is somewhere in the high 50s. Utility maximization wil suggest marginal rates substantially lower than this, and longer-term disincentive effects on human capital accumulation will drop it even further.

Have you read this paper?

http://piketty.pse.ens.fr/fichiers/public/PikettySaezStantcheva2011.pdf

( http://elsa.berkeley.edu/~saez/piket...1_12slides.pdf )

They argue against the pure supply side value of ~57% due to avoidance and bargaining contributions (and favors high contribution to elasticity due to bargaining).

JM

[Lefty Scaevola]

53% marginal tax rate?

I am guessing that he is in NYC with federal, state, and city income taxes added up.

[Provost Harrison]

Interesting.

Tell me about it

[Spaced Cowboy]

Just finished my taxes, last year turbo tax told me to pay in ~$8000 in estimnated taxes. This year's return netted me an ~$8000 refund (and the stupid software is telling me to pay ~$3000 in estimated taxes this year).

We made about $10,000 more this year as well, but I think I finally got my withholding in the right zone.

But on another note, WTF is up with FICA. They lowered it to 4.2% from 6.2%...I thought Social Security was hurting? How can this help. Also since this is a social program, why is there a cap on wages that it the taxes is taken upon? Seems like the whole point is to tax businesses and people to pay for the less fortunate, why cap it, make those CEO's pay their full share.

[Provost Harrison]

Of course they should...progressive taxation should be a cornerstone of the tax system, but it doesn't seem to work out that way. And the UK system really does obfuscate how much tax you are actually paying by its ridiculous complexity...