So the maximum tax rate will be 43.4%
(Remember, after this year top rate goes from 35->39.6%)
if you have short-term gains (ie daytrading, etc) of a year or less and you exceed whatever the income thresholds are, you could be taxed 43.4% BEFORE your state income taxes.
43.4% is also possible if you own your own biz since you pay the medicare match on your salary (ie you can divert the income to dividends since it would add up the the same since they are increasing the medicare tax to 2.35 for the employee side)
Wonder what effects its going to have driving up the top federal rate from 35% -> 43.4% over 3 years.
Is it possible with state taxes of I believe 10%+ max in NJ or close to that in CA that someone could pay over 50% in taxes? I know that state taxes are deductible, but what is the theroretical highest tax you could pay if you lived in a high tax state (CA, NJ, wherever else).. could it exceed 50%?
Dems/Liberals have Bush/Repubs to thank, if they hadn't screwed up so bad there would have been far more conservatives in House and undoubtedly Senate where this thing wouldn't have gotten through.
Plus, I dont' believe the tax thresholds are indexed to inflation haha (reading congress.gov) but it changes and there are so many admendments maybe it will(?)
:eek:
(Remember, after this year top rate goes from 35->39.6%)
if you have short-term gains (ie daytrading, etc) of a year or less and you exceed whatever the income thresholds are, you could be taxed 43.4% BEFORE your state income taxes.
43.4% is also possible if you own your own biz since you pay the medicare match on your salary (ie you can divert the income to dividends since it would add up the the same since they are increasing the medicare tax to 2.35 for the employee side)
Wonder what effects its going to have driving up the top federal rate from 35% -> 43.4% over 3 years.
Is it possible with state taxes of I believe 10%+ max in NJ or close to that in CA that someone could pay over 50% in taxes? I know that state taxes are deductible, but what is the theroretical highest tax you could pay if you lived in a high tax state (CA, NJ, wherever else).. could it exceed 50%?
Dems/Liberals have Bush/Repubs to thank, if they hadn't screwed up so bad there would have been far more conservatives in House and undoubtedly Senate where this thing wouldn't have gotten through.
Plus, I dont' believe the tax thresholds are indexed to inflation haha (reading congress.gov) but it changes and there are so many admendments maybe it will(?)
:eek:
