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Biden's capital gains tax proposal could crush the economy
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04-27-2024, 10:09 AM
(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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