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Biden's capital gains tax proposal could crush the economy

#10
(This post was last modified: 04-27-2024, 10:33 AM by InvalidContentWasFoundStarting. Edited 3 times in total.)

(Apologies for the formatting)

I'm going to break this up into several posts so I don't hit everybody over the head with BIG WALL OF TEXT
I'm using 2022 figures ... because ... well ... OK, I know the deadline was two weeks ago, shut up.

If someone says they're in the 22% tax rate that doesn't mean they pay 22% on ALL of their income.
We have a graduated tax system.

Filing Status: Single
IF YOUR 2022 TAXABLE INCOME IS:
OVER  BUT NOT OVER  THE TAX IS  OF THE AMOUNT OVER
  0        10,275              10%              0
10,275    41,775        1,027.50 + 12%    10,275
41,775    89,075        4,087.50 + 22%    41,775
89,075    170,050        15,213.50 + 24%    89,075
170,050    215,950        34,647.50 + 32%    170,050
215,950    539,900        49,335.50 + 35%    215,950
539,900 and up          162,718.00 + 37%    539,900

SO IF YOU WERE SINGLE AND HAD $1,000,000 IN TAXABLE INCOME:
  You would pay 10% tax (1,027.50) on the chunk of Taxable Income between 0 and 10,275.
  Then you would pay 12% (3,780) on the chunk of Taxable Income between 10,276 and 41,775.
  Then you would pay 22% (10,406) on the chunk of Taxable Income between 41,776 and 89,075.
  Then you would pay 24% (19,434) on the chunk of Taxable Income between 89,076 and 170,050.
  Then you would pay 32% (14,688) on the chunk of Taxable Income between 170,051 and 215,950.
  Then you would pay 35% (113,382.50) on the chunk of Taxable Income between 215,951 and 539,900.
  Then you would pay 37% (170,237) on the chunk of Taxable Income between 539,901 and 1,000,000.
For TOTAL TAX of 1,027.50 + 3,780 + 10,406 + 19,434 + 14,688 + 113,382.50 + 170,237 = 332,955
or just over 33% of the $1,000,000

NOTE: Taxable Income is NOT the same as Adjusted Gross Income.
      Taxable Income = Adjusted Gross Income minus Sch A Deductions (or Standard Deduction).
      Historically, Exemptions were also subtracted from AGI to reach Taxable Income.
      However Exemptions were temporarily deprecated by TCJA in lieu of nearly doubled Std Ded.
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Messages In This Thread
RE: Biden's capital gains tax proposal could crush the economy - by InvalidContentWasFoundStarting - 04-27-2024, 10:09 AM
copycat - by copycat - 04-27-2024, 08:09 PM
RE: copycat - by mikesez - 04-27-2024, 10:05 PM



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