The New Rich

[youbet]

Quote:

Originally Posted by Independent If I understand the Medicare Part B rules, the MAGI limit for a couple is $170,000. The additional Medicare premium is $1,008 annually, or about 0.6% of their annual gross income. For a single person the numbers are $85,000 and $504, for the same 0.6%.

Yes, that's right. Of course, the $170k income doesn't necessarily mean you're living on a regular annual income of $170k. Roth conversions, realized capital gains, RMD's, retirement buyouts or bonuses, etc., all count towards the MAGI.

So, bottom line, doing something to accomodate an early retirement status like a Roth conversion or taking a realized CG to make an AA move can result in not only more income tax but also higher health insurance premiums. And the $1,008 annual health insurance penalty occurs even if you exceeded the $170k limit by a few dollars and only one year.

[samclem]

Quote:

Originally Posted by Independent If I understand this correctly, the same argument can be made about taxes on wages.

+1. I've heard (and used to make) the argument about special treatment of CG being beneficial to the economy, but now I see it as just another tax code loophole/special deal. Interest, dividends, wages, CG: If it is income, tax it the same. And that should mean we can lower the overall rates on earned income (if we keep revenue neutrality. And that's the rub . . .)

[Theduckguru]

Quote:

Originally Posted by Malcolm2 Sorry, but if 90 percent of the wealth was with one family we would be living in an aristocracy, which we are not. No sense in such an example. We have never had "unbridled capitalism" as you call it. There have always been laws and market forces. The market forces are far more efficient. This "term d'jour" of income inequality is just nonsense designed and brought up again recently to create class envy for political benefit. Using an example of the Depression is another red herring. We are nowhere near that. By the way, there is no 'guarantee of income equality' in the U.S. Constitution. I checked with my handy copy on my desk. How would you propose achieving it? Government? We all see how well that has worked out (i.e. Communism, and large failed/failing government programs). "From each according to his ability, to each according to his need." -We don't want to go there again. Don't forget, the people that this article calls "the new rich" pay nearly all the income taxes and collect the fewest entitlements. Best to keep government and desperate politics out of it, as government is usually the problem.

One family already controls the majority if wealth in the world, their last is Inc. Corporations are family my friends.

[Texas Proud]

Quote:

Originally Posted by Theduckguru One family already controls the majority if wealth in the world, their last is Inc. Corporations are family my friends.

Corporations are 'people', not families...

[Texas Proud]

It was interesting that on the national news tonight they had a segment on the FIT that is paid....

They said that the top 40% pay 106% of ALL federal income taxes... (again, this is income taxes and not any other kind of federal tax).... yes, you read that right... because of all the refundable credits etc., the bottom 40% has a negative 10% rate.... and there were a good number of people that had a negative 15% rate...

As the person said, they pay more than their 'fair share'...

[Greencheese]

Quote:

Originally Posted by Texas Proud It was interesting that on the national news tonight they had a segment on the FIT that is paid.... They said that the top 40% pay 106% of ALL federal income taxes... (again, this is income taxes and not any other kind of federal tax).... yes, you read that right... because of all the refundable credits etc., the bottom 40% has a negative 10% rate.... and there were a good number of people that had a negative 15% rate... As the person said, they pay more than their 'fair share'...

You know what they say, What's Mine is Mine and what's yours is Mine!

[Malcolm2]

The best way increase available revenue is just to reduce the excessive spending of the Federal Government.

It is a sad commentary on the great country that America is that dependence on government is encouraged, especially recently.
There is no real reason for this explosion of dependence other than it is useful for the government to promote it and easy for some to accept it.

Granted SS is an earned benefit, but after a few years it becomes a simple entitlement as amounts paid in are dwarfed by benefits.

Looking for more ways to tax is not the answer. Leaving a huge bill for our kids is not either.

[MichaelB]

Thanks for a lively discussion

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