I have signed up for the Class of 2015. My decision was further confirmed when I met with my accountant and I saw with hard figures the pain of the most recent increase in tax rates. I am paying income tax at the rate of 39.6 federal, 4.1 State (which is relatively low. i.e. had I remained a NJ resident I would be paying 11.0% State tax), 3.0% Obamacare tax, real estate tax, sales tax, capital gains tax etc...
With all of this, MORE than 50% of my income goes to pay taxes. When you are in the highest bracket most of your deductions phase out so there is not much one can do. Mortgage interest, state and local taxes all phase out.
Simply stated, working and paying tax on W-2 income is not worth it. The founders never contemplated that it would be "One for you and One for me".
The point of my post is that the most recent higher tax rates have strongly effected my decision to retire. I would request that this post does not turn into a discussion of "how lucky I am to be in the 39.6% bracket" but that replies should focus on the effect that the most recently enacted higher tax rates have on one's decision to retire.
With all of this, MORE than 50% of my income goes to pay taxes. When you are in the highest bracket most of your deductions phase out so there is not much one can do. Mortgage interest, state and local taxes all phase out.
Simply stated, working and paying tax on W-2 income is not worth it. The founders never contemplated that it would be "One for you and One for me".
The point of my post is that the most recent higher tax rates have strongly effected my decision to retire. I would request that this post does not turn into a discussion of "how lucky I am to be in the 39.6% bracket" but that replies should focus on the effect that the most recently enacted higher tax rates have on one's decision to retire.