Top marginal tax rate in US now ~65%

[Kidlicious]

You still can if you're stupid. There's also phaseouts on the standard deduction and on the lower tiers of rates - that's where the 39.6% rate comes in and then goes out once the phaseout is complete.

The AMT (added) can be substantial in dollars, but not that much in %, can it? I'm thinking 5 or 10% of agi at the most.

[DaShi]

I, for one, long to live in a country without a middle class screwing it up.

[MrFun]

You dream of only having 35% of your income for your own use?

With a high income like that, I would not know what to do with all my money after I pay 35 - 50 percent. I'd be a happy camper.

[MichaeltheGreat]

Is there a ceiling on the income taxable for national insurance? In the US only the first $110,000 is taxable for social security and medicare.

I think the medicare cap is gone.

[MichaeltheGreat]

You dream of only having 35% of your income for your own use?

If you can show me one live example of anyone in the US paying that. FICA caps out, and it's your problem if you choose to live in a city that has a local income tax. Worst case in the People's Republic of California is you can get to around 53% combined marginal tax rate, if you're making $1 million a year and a short form filer and have no capital gains and you don't do jack **** to defer income or reduce liability. Only 470k a year after tax? Lions and Tigers and Bears, oh my!

[MichaeltheGreat]

There's a phase out on the alternative minimum tax, but it's put in to discourage married people from filing seperate. So they file jointly. No one pays anything like 60% tax in the US.

You still can if you're stupid. There's also phaseouts on the standard deduction and on the lower tiers of rates - that's where the 39.6% rate comes in and then goes out once the phaseout is complete.

[Guynemer]

Yes, if I had that much income in the first place.

Also, the person doing the punishing in question may or may not bear a striking resemblance to Christina Hendricks. I can neither confirm nor deny this.

[DinoDoc]

I would love to have the "problem" of being in the top tax bracket. I dream of being that punished.

You dream of only having 35% of your income for your own use?

[Guynemer]

I would love to have the "problem" of being in the top tax bracket. I dream of being that punished.

[Krill]

http://en.wikipedia.org/wiki/National_Insurance

[Dr Strangelove]

The numbers seem nice and low for you.

I pay 40% on earnings above £32k and 50% on anything I would earn above £150k (though that's dropping to 45% in april).
+ 12-14% national insurance
+ 20% sales tax on most things.
+ vast additional duties on fuel, booze etc.

Is there a ceiling on the income taxable for national insurance? In the US only the first $110,000 is taxable for social security and medicare.

[Kidlicious]

OK, all you've actually told me is that you don't understand phaseouts.

There's a phase out on the alternative minimum tax, but it's put in to discourage married people from filing seperate. So they file jointly. No one pays anything like 60% tax in the US.

[Dauphin]

First gross income is adjusted. We call that agi. From agi deductions are made to taxable income. The marginal tax rate is applied to your taxable income, not to you gross income or agi. I don't know where KH is coming up with those numbers. They don't make sense.

There's been no change in adjustments, only to deductions. What I'm saying is that no one actually pays 35%, but without deductions someone could pay as much as 35%.

OK, all you've actually told me is that you don't understand phaseouts.

[Ben Kenobi]

Well just a month ago you were a poor teacher on $10k a year. Now you're apparently a business owner struggling under a heavy tax burden. This seems.. odd.

I've always owned my own business since I graduated. I haven't stopped taking clients...

[Felch]

KH knows about stacking paper to the ceiling the same way that I know about getting high. From experience.