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2011 Income Tax Rates Prediction

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The official 2011 income tax brackets have been released.

We talked about how capital gains taxes will increase in 2011 (and how dividends will be taxed as ordinary income in 2011 too), but we haven’t talked much about the tax brackets themselves. Normally, in the fall, we go through the exercise of calculating the tax brackets once we know the inflation figures. This year it’ll be a little different as the Bush-era tax cuts will expire this year.

As you may remember, in 2001 and 2003, President Bush signed two tax bills that adjusted and then accelerated the adjustments to our tax brackets. Most notably, they added a 10% and 25% tax brackets and lowered the top tiers from 39.6% and 36% to 35% and 33%, respectively. The reason why the cuts were considered “for the rich” was because the top two tiers were lowered and because capital gains taxes were slashed. They were cut for everyone but 4.6% from the highest tier counts for more than at the lower brackets.

So where will taxes go in 2011? President Obama’s 2011 budget seeks to expire the tax cuts in 2011, letting the top two tiers rise back to where they were before the cuts but has promised to leave tax rates the same for those making less than $250,000 (married) and $200,000 (single). This would mean that we would keep the 10% and 25% brackets, but replace the 35% with $39.6% and the 33% with the 35% brackets. It would look something like this:

2011 IRS Tax Brackets Prediction

Assuming only changes to the top two brackets but accounting for inflation over the 2010 tax brackets (2% for the 12 months through May 2010 according to the BLS), we get:

Tax Bracket Single Married Filing Jointly
10% Bracket $0 – $8,543 $0 – $17,085
15% Bracket $8,543 – $34,680 $17,085 – $69,360
25% Bracket $34,680 – $84,048 $69,360 – $140,046
28% Bracket $84,048 – $175,287 $140,046 – $213,435
35% Bracket $175,287 – $381,123 $213,435 – $381,123
39.6% Bracket $381,123+ $381,123+

Some other notable changes from the 2011 budget proposal:

  • Limit itemized deductions to the 28% rate, meaning high income households would see the value of their deductions limited. Before the 3% itemized deduction rule phased out this year, high earners were already seeing their deductions phased out.
  • Keep the estate tax with a $3.5 million exemption level per person and a top rate of 45%, current law gives a $1 million exemption and a 55% top rate.
  • Make permanent the tax cuts in the 2001 and 2003 laws for those making less than $200,000 (single) and $250,000 (married).
  • You can read more from CNN Money (these are unrelated to the actual brackets themselves).

What do you think of the new brackets?

{ 81 comments, please add your thoughts now! }

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81 Responses to “2011 Income Tax Rates Prediction”

  1. zapeta says:

    I’m just hoping that they do actually pass a law to keep the 10% bracket. The difference between 10% and 15% is pretty large for those of us on the low end of the brackets. If the 10% bracket goes away it will put a squeeze on my household for sure.

    • Brian says:

      Yeah, let’s punish those rich people. Let the taxes go up on them because they can afford it, right? Wealth Redistribution is Socialism… Do you ever wonder where the money for the EIC comes from? That comes from “Rich” people so the Government can give it to the “Poor” people.

      Why not institute fairness by a flat tax? Why shouldn’t everyone pay their “fair share?” Isn’t that what the Democrats are asking for?

      • Alan says:

        So the same can be said for making those of us without children pay more in taxes so that the government can redistribute my hard earned money to award people for breeding. Talk about socialism!

        • John George says:

          A basic economic principal of a capitalistic democracy is a progressive tax scale. They are necessary to preserve the democracy because history and economic theory has taught us that wealth accumulates in the upper strata of a society unless there is a progressive tax structure to “churn” the money back through the system. While the principal is certainly “socialistic”, that small amount of socialism holds off the total socialism that results after too much of the wealth accumulates and the poor populace revolts.

          • Connda says:

            But a flat tax of say 10 – 15% without any loopholes would accomplish more. It would completely streamline the IRS (downsize them by about 80% or more)and save the US just a huge amount of overhead. If the government wants to kickback credits to the poor, they could do it through the social welfare agencies. Considering the the upper 10% of the population accounts for about 90% of the wealth generated in this country, I’d figure that the government coffers would fill up pretty quickly.

      • Solomons says:

        Amen. In this country, the Rich get brakes and the Poor receives plenty assistants from the government. The fabric of USA economy has been built with the sweat and blood of millions of middle-income workers, and they suffers the most. Talk about unfairness!

        I wish the law change giving a 10% tax bracket for anyone whose income is from $0-$100,000.

  2. Ryan says:

    So this may be too simple of a question, but why are so many people complaining about taxes going up (assuming the above happens)?

    • cubiclegeoff says:

      because any tax, no matter who it hits, people complain about, even if it doesn’t affect them.

      People also shouldn’t complain since our taxes are low, and currently we don’t have the money to keep our system going. Which no one cares about until the next bridge collapses due to disrepair.

      • saladdin says:

        Like everyone else, there are conversations I have with people at work about politic/taxes. They always say “taxes are too high” and the first thing I ask is “What bracket you in?” and they can’t answer.

        We heard our parents say “Taxes are too high” and we go to school and the only thing people remember about US history is “No taxes without representation.” It is in our DNA to hate taxes but at the same time want bridges, cops, firemen, teachers.

        We are walking, talking contradications. We wail about taxes but most polls I’ve seen say people want The Dope and (to a lesser percent) prostitution legalized so we can THEN TAX IT.

        saladdin

        • Jim says:

          This line hits it on the head – “We are walking, talking contradications.”

          We hate socialism but we love Social Security and Medicare.

          • Joaquin says:

            Social Security is not an entitlement program, but a pension program paid for by employees and employers.

            The top tax rates can have a big impact on small business owners, especially S-corps, who pay taxes on earned business income, even if the earnings aren’t removed from the business.

          • eric says:

            This is why it’s so frustrating talking to some people about taxes. They’re clearly confused!

          • Don C says:

            Social security and Medicare are ripe with fraud and abuse. They should turn it into a 401k type program. Fine, you make us pay into the system. It gets invested however determined. When it’s time to get paid at retirement, you get what you put in plus any earnings. Why should people but in little or nothing and get a paycheck for life in retirement?

            I’m even fine with making all forms of income subject to SS taxes with no limit, but you should get back what you put into the system. If it runs out, it runs out.

            SS is just a big ponzi scheme.

        • Blaine says:

          Yes, taxes are too high, I am in the 28 percent bracket. Why do I complain, it is because of all the additional entitlements that more taxes will generate. You don’t really believe we will pay off our National debt with the additional money, it is like a teenager who gets more allowance. He just spends it on more crap

      • Laura says:

        I think that single folks are targeted! It costs as much to run a house, heat and cool it for a single person as a married couple. Their water bill may be a bit higher a grocery bill may be more, but taxes on property, insurance, and upkeep are the same. The single household is at a huge disadvantage

        • Sarah says:

          YOu are discussing it like everyone in a dual household is bringing in money. I am married and my husband is a subcontractor with an ex-wife and three kids. We only get to claim one, I have to shell out money for them because my husband can’t find work. Do you call that fair? I am supporting basically a family of five on my $42000 yearly salary without taxes taken out, after taxes (i live in CT) it is down to $32000, plus taxes of $3000 a year, condo fees of $3600 a year $14400 in mortgage costs a year, $8840 in child support, $4240 in Student loans, $600 in water, $500 in car taxes-that is more than I make a year. I can’t support myself and a family of five, but since they dont live with us every day, we can’t claim the benefits the mother does. So think before you speak because you dont know how the other half lives. I don’t have my own children, and I am paying for them double because of child support that is tax free income for her. I am below water paying 15%

    • Don C says:

      People will always complain about taxes. Even those that don’t actually pay them (about 50% of the country). My problem is that the gov’t is made up of politicians, not money managers or shrewd business people. They waste out taxpayer dollars and spend it like it grows on trees. I think overall we pay in way too much. Look at all of the wastefull gov’t spending going on. If we didn’t give them all of this cash they wouldn’t be able to throw it away (at least not as fast…) Second, I think the overall tax burden should be spread out to more individuals. Everyone is a beneficiary of some gov’t program or another in some direct or indirect way. As such, everyone should pay into the pot.

      • saladdin says:

        You should be careful with words. Saying 50% of people do not pay taxes is an utter lie. When you buy gas, you pay tax.
        When you buy a soda, you pay taxes.
        When you get paid, you pay payroll taxes.
        Property taxes, Wheel taxes, 911 taxes on cell phones, blah blah blah.

        I don’t know anybody who doesn’t put in gas or buy a candy bar while on their phone.

        This is the problem with discussions about taxes. People are stupid about how taxes work, don’t know the difference between marginal and effective rates and believe everything commentators say on Fox News and/or MSNBC.

        Absolutely no way do I want government ran in its majority by businessmen. If businessmen are so smart then what happend to World Com, Enron and the entire auto industry? There has to be checks and balances. There must be social spenders mixed with businessmen or we will tip over one way or another.

        saladdin

        • Don C says:

          Agreed. I was referring to income taxes. Yes the gov’t has found ways of taxing almost everything we do, but the misc taxes we pay on the phone, utility, gas bills is noting compared to a person’s income tax.

          I am all for check and balances. Too bad we don’t have that in today’s government.

          • saladdin says:

            Disagree. We have lots of checks/balances. That’s why even with 60 Senators (at the time) the Prez had to do an end-around to get the Health Care Bill passed. And even with control of both Houses all Prez’s have to do recess appointments.

            I won’t argue with you if you said “It’s not ran how I like or how I would do it” but I think the system itself is a beautiful thing. It’s structured so that every election SOME changes can be accomplished. Nothing is written in stone. Don’t like a law, amend it. Don’t agree with a court decision, appeal it. Our society changes tone and the system allows for those changes though at a pace that allows debate. I know it is slow for some peoples liking but I prefer that way. Just like making sweet, sweet love. (Saladdin humor for reward for those that read my long posts).

            saladdin

        • Texas Wahoo says:

          What happened to World Com, Enron, and the auto industry? The same thing that happened to Orange County and the state of California. Unfortunately, all were bailed out by the government except for World Com and Enron.

          • saladdin says:

            You must have no idea what happened if you are making a comment like that. California kept passing spending program after program by referendum and limited property tax growth. Poorly run comes to mind not intentionally stealing from 401ks and falsely inflating stock prices. Those companies were wrecked by out and out fraud, illegal activities and poor business decisions.

            If you can only rinse and repeat the meme of “government bailout” you have no understanding of current events.

            saladdin

        • aditya says:

          You obviously have zero intelligence. More than 50% of Americans now pay absolutely nothing in federal income tax. It’s non-sense. In fact some get back money due to the child credit. If you pay no income taxes you should not have a vote in the federal elections. Only those who have paid their fare share should have the right to say what we do with it. And spare me the sobbing stories about people not having jobs. There are plenty of jobs available… either take a pay cut or train to get a new one. I’m sick of paying for other peoples’ bad behavior.

          • PissedTaxpayer says:

            THAT!

            48.5% of Americans pay no federal income tax. That means ALL the federal income taxes are paid by 51.5% of the people. Only those 51.5% should have a vote on federal taxes.

            Taxes on soda, candy, your cell phone are STATE taxes and do not contribute to FEDERAL taxes. Guess what, the 51.5% pay those STATE taxes too!

        • Andy says:

          “WHAT HAPPENED TO THE AUTO INDUSTRY?” Our gov bailed them out EXECPT for FORD which is run by a smart businessman who should run for PRESIDENT!

        • TexasMarine says:

          saladdin – maybe you should check with the IRS. According to their numbers, for the tax year 2009. 48% of Americans paid no federal income tax. blah blah bullchit. You are completely ignorant here in your comments. A family of 5 making 48,000 per year not only pays no federal income tax, they receive an earned income check from the governmenet for $5,666 dollars. My numbers come from government websites, you just make dimwitted comments. Get a grip.

          • Sarah says:

            Check again before YOU speak. Read my comment above. I am lucky if my husband makes $20000 a year after taxes. I pay $10000 in just income tax a year on my $42000. We make a total maybe of $52000, support a family of five-but because my husband is divorce we dont get the nice tax bracket, and have to pay out for his business taxes, even after all that I have withheld for it. So think before you speak because it is not as cut and dry as that. I get no benefits and am basically in the poor house even though the ex makes more than me, is on huskey because she is taxing the system, gets to claim the kids, and doesn’t get taxed ont he money we give her that we can’t claim as a deduction. Get off your high horse and think about it before you claim that a family of five making $48000k a year doesn’t get taxed. Why don’t you come and support me and my family because it is me alone-not the government, and I am not taking any handouts.

      • krayzie2k says:

        George Bush was an avid businessman. Look where that got us.

      • Texas T says:

        Yet people continue to vote them into office. The kicker is that the young idealist who wants to shake things up and get into office ends up playing “I’ll help ,you help me” game just to get there is trapped and no better then their predecessors afters it’s all said and done.

  3. otipoby says:

    I fail to see how the President will keep his pledge to not increase taxes for married filing jointly under $250k if your brackets are correct. If a married filing jointly couple makes between $213,436 and $250,000, their tax liability will increase since the marginal rate goes from 33% to 35%.

  4. cubiclegeoff says:

    I see no problem letting the upper brackets go up, although if I was in those higher tax brackets I might complain a bit, but would probably be okay with it. I think it’s good they’re going to hopefully tax investment managers the correct rate (as it is their income, not their own capital gains). Most of the other stuff I’m also okay with. I wouldn’t mind the child care tax credit to go for higher income individuals (especially those in high cost states), but not much I can do about that.

  5. Fred says:

    It’s interesting that in the numbers north of 25%, there is a “marriage penalty” for two married people making approximately the same salary. That penalty is HUGE if the two people both make about $350,000. Could these people file separately and do better?

    • Fred says:

      Oops – also I think there’s a typo in the table – 36.9 instead of 39.6.

    • Jessica says:

      Generally, when both spouses make a large amount of money it is beneficial to file “married filing separately”. It was a $4000 difference in liability for my husband and I vs. married filing jointly. Of course if we didn’t get married at all it was an even greater disparity in tax liability.

    • Texas Wahoo says:

      Unfortunately, the “married filing separately” brackets are made so that the highest bracket is half that of the married filing jointly highest bracket. So if you make the same amount as your spouse above the highest tax bracket, you will pay the same amount of taxes no matter how you file.

      If you decide not to get married, however, you will pay significantly less. Getting married this year will cost us about 6k in taxes this year alone!

  6. CreditShout says:

    Thanks for the updated chart!

  7. shadox says:

    We have to face the music. Taxes must go up, or spending must come down. Likely both…

    • Or we can just let the deficit grow :)

    • adam says:

      How about instead of pushing taxes up and spending down we just give gov. employes a nice pay cut the pres maked what 750k a year and doesn’t pay for a single thing how about we start choping salarys at the top and work are way down…. or maybe manditory drug tests for food stamps and anyother gov. Assistance???? U don’t need more taxes you need money mangment. And an ashole for a president to set up these kinds of things and he must not be afrade to die…. cuz he will prob be shot…

  8. Rudy says:

    Don’t believe that the govt does a better job of spending our hard earned money than us. I believe in smaller govt and less taxes which would lead to a more robust economy. Where will it all end? Don’t mind paying fair share but this is out of control. Those that think this current trend is ok are really uniformed and probably don’t pay taxes. Waste in govt should be outlawed.

    • Anonymous says:

      I agree with you. I don’t mind paying taxes, but the spending is out of control which will cause the U.S. to go bankrupt.

    • Anonymous says:

      There is no such thing as a “fair share.” If taxes are collected without the consent of the individual, it is theft by a nicer name. I am fully willing to voluntarily pay for goods and services I find valuable (say, a hiking/camping/wildlife preserve wilderness area,) and I don’t condone forcing others with differing values to pay for them. I also condemn forcing me to pay for things that I find abhorrent (such as bombing Afghanistan) or simply lacking value for the expected cost (like many public transit systems, which would go bankrupt if they weren’t subsidized by non-users.)

      The problem with socializing any costs is that economic calculation is distorted and decision making becomes skewed. If you ask someone “would you like a gourmet dinner with a vintage bottle of wine” most people would reply “yes!” If you ask them the same question and apply a cost – “…for $10″ ” “…for $100″ or “…for $1000″ – the distribution of answers will, as you might expect, change dramatically. We all have finite resources, even the richest of us, and so by definition when we make choices, we forego other options. It’s not good enough to say “I want X.” We have to think “I am willing to give up Y to obtain X.” And we have to realize that Y and X will vary for each individual person. One person’s waste is another person’s X. The Y that one person sees as exorbitant could seem perfectly reasonable to another.

      Until we look at the taxation question in principle, beyond only what is “beneficial for me”, what fits “my values” or what’s “fair according to my standards” we will continue to be stuck in an aggressive and injurious system where we all pay a whole lot, under penalty of destroying your life through imprisonment or worse, for very little that any given individual taxpayer actually values.

  9. Mike says:

    I think these tax increases are absolutely great! It will mean marginalization of the Democratic Party for the rest of my lifetime and the impeachment of the worst President in our history. Bring em on!

    • SAm says:

      And what exactly makes him the worst President in our history? Ronald Reagan’s fiscal policies did more damage to the economy than Bush and Obama combined. Nixon was a criminal. So, can you truthfully tell us why this President is the “worst”?

      • aditya says:

        wow you really don’t know anything. Trickle down is the way it works idiot.
        Taxing people who create the jobs will cause people to get fired. It’s isn’t rocket science moron.

        • Benjamin Turner says:

          You’re arguing supply side economics, which makes little sense and implies that a large supply creates aggregate demand. I have infinite turds, do you want one?

          I don’t think so.

          Raising individual taxes will not cause people “to get fired”. If anything, it will give these business owners an incentive to reinvest into their own company (deductible) instead of removing money from it in the form of profits (taxable income).

          It’s not rocket science, moron.

        • sarah says:

          I hate that the rich who earn there money is responsible for the ones who don’t want to work or make more of there lives!!!! I don’t need the government to hold my hand. I went through the worst financial time of my life, I am glad I was raised that no one owes me anything you make your own way. That is what I did. I don’t understand sense Obama has been president everyone should hate the rich..HERES A QUESTION HAVE YOU EVER WORKED FOR A POOR PERSON!!!THEY CREATE THE JOBS..

    • Mike says:

      The first question to ask is which should be larger? The public or private sector of the economy? Tha answer has to be the private sector. Worrisomely this year, for the first time public income spent by Americans exceeded that of private income spent. This cannot continue. The US economy has always thrived compared with its competitors because jobs in the public sector generally offered lower pay but more security compared with the private sector which was opposite. Now we learn that public jobs are frequently providing both. Moreover public jobs still offer defined pension plans which have nearly disappeared in the private sector. These public pension liabilities will make the deficit even worse and sink the USA. Painful as it is, Obama must do something about this. Instead he has been beating up the private sector usurping its power. The drilling moratorium in the Gulf is one example. The other challenge is that America cannot continue to give away all its manufacturing to China. Eventually tariffs will have to be enacted or some agreements will have to be made. The job multiplier effect for manufacturing jobs is much higher than for service ones. Obama avoids dialogue with China. Finally, no country can survive forever with unrestricted immigration. That is what Obama effectively proposes. Illegal immigration is sinking many state budgets because of collateral costs encountered including crime, drug trafficking, schooling, healthcare, food stamps, and so forth. Obama knows this but is hoping immigration reform will shield his own shaky credentials. For all these reasons and more, Obama is not the
      Statesman America needs. That is why he will not fare well in the Pantheon of leaders.

      • Donny says:

        Bush opened the door for American manufacturing to go to China, with tax cuts! Effectively putting a hurting on the middle class. He blamed unions for this. Yet when unions were more in power, companies had their highest profits, people worked, the economy was strong. Remember the speech that “outsourcing was good for us”? B.S.! Now people (well the GOP) point fingers at the president blaming him for the lack of jobs. As for the tax breaks running out for the fat cats…..tough titty said the kitty! Tax the crap out of the companies that continue to manufacture overseas but yet claim to be American companies. Give breaks to small businesses and, especially, the big ones that are on our soil hiring Americans.

        • aditya says:

          Oh please. the worst thing about the US are the ridiculous unions here. A union is just a method for a group of people to be lazy and try to get paid more. Unions are single handedly destroying this country. I’m sick of this liberal crap. Flat tax for everyone. That’s the only way to go.

        • Texas T says:

          The unions have long since served their purpose. They do more damage than good now. If the current average union worker tried to get away with excessive absences, habitual tardiness, and outrageous demands in the non-union sector they would be fired in a matter of days. I spent many hours having to fight with management to keep union workers employed as a former Steward. My conversation with them afterward consisted of “Come to work on time and do your job!”. If I would have had any say in it, they would have been fired.

        • johnala says:

          Corporate tax…ANY and ALL corporate tax is passed directly to the consumer–as it is calculated as part of the “price of doing business in this country”. The IRS can NOT tax GM, GM simply raises the price it charges the consumer (you and me) for the cars we purchase.
          Raising Corporate tax rates do ONLY two things (potentially):
          1. Encourage certain corporate behavior in order to benefit from tax advantages. OR…
          2. LEAVE THE COUNTRY for more favorable tax climates.

  10. sheilah says:

    I agree that taxes need to be paid, but not when they are mostly going towards entitlement programs that the Presient believes in. The more you give to entitle people the more that will be spent that will increase the deficit even more that eventually bankrupt the U.S.

  11. Kathleen says:

    People are blaming Obama for the ‘biggest tax increase in history’ coming up in 2011. Those same people, presumably, voted for GWB in 2000 and 2004. How, may I ask, did they think the wars he started would be paid for? Did they think we could have wars on two fronts and not have tax increases? Seriously?

  12. John says:

    There would be no need for this tax increse IF the govenrment would trim fat from the budget and stop wastefull spending. It’s that simple!

  13. Mandy says:

    I think what frustrates me the most is the government taking money from those who work hard and earn it and handing it out to those who are too lazy. I believe we have a moral obligation to take care of the poor and needy, but someone should draw a line in the sand. You have women who are not responsible with their bodies having multiple kids that they can’t afford and then they want us to pay for them to survive. Bull Crap! Why aren’t we holding people more responsible? Why are we not putting limits on these things. All we are doing is making the lazy lazier and giving others a reason not to work so hard. Why work hard just to give more of your money away when you can work little and get handouts? I’m not objecting to taxes, I’m objecting to what my taxes are being used for. I think it’s quite obvious that there is a lot of waste in the system.

    • Nina says:

      couldn’t agree more!

    • Taxpayer 77 says:

      I whole heartedly agree Mandy, but can anyone provide a solution to this? I see it all the time. For example: I go to the supermarket and pay for my groceries with my hard earned cash – as I wait in line, the man ahead of me in line has 4x the groceries and pays with one of those Benefit cards that replaced the food stamp. Shortly after, I walk out to my car and see this guy loading his bags into his Mercedes. This is a classic example of misused gov’t programs. Another are all the people who are physically and mentally able to work collecting welfare and claiming there are no jobs available. Really?

      Here’s an idea: Lower taxes and make those collecting benefets work. You want a check, then pick up that shovel and dig.

      Otherwise, if theres anyone out there who knows how to implement a plan to fix the system, Please, speak up!

      • Dave says:

        Totally agree that people getting handouts from welfare should be expected to work for those checks. There’s plenty of jobs out there that could be done with unskilled labor to gain some value for society as a whole. Picking up trash and cleaning up public areas comes to mind. For those that think they can’t spare the time because they have to watch their kids that they can’t afford, then some of the welfare recipients could be employed offering child-care.

        Somehow I think if welfare recipients were expected to perform such less-than-fabulous jobs to earn their checks, we’d find many of them seeking actual employment and getting off welfare.

  14. Gary_Cinci says:

    Raising taxes stops spending. I am a business man with a successful business. If my taxes go up I am going to drop a bracket. Take the household income $213,435 step. There is an 8% jump in taxes. At $200,000 plus thats over $16,000 in additional taxes. I will take money out of my household and shelter it. And I dont mean jobs. I will do whatever it takes to not pay more taxes which means LESS money I will spend on the economy. Growth comes from reinvestment not TAKING!

  15. SKJ says:

    The Bush tax cuts should be left in place. With the Health plan, as it is NOW, top income brackets can reach 48%. People forget that most states have income tax as well. Soaking the rich has been tried in Europe, and it failed. You can get away with around a 40-50% total (all levels of gov) top bracket, and usually, top brackets between 30-40% are better.

    Regardless, I’d rather have a minimal bracket, minimal deduction system, since tax compliance is such a pain.

  16. Newton says:

    It seems a lot of people on this website believe all our taxes are going to fund welfare, when in fact welfare is less than 1%. I don’t see anyone suggesting cuts to SSN, Medicare, Medic-aid, or the elephant in the room: Defense. Why do we need to spend twice as much as the world combined on defense?

    • Benjamin Turner says:

      Probably because we’ve created twice as many demons as the rest of the world has with our policies.

      If anyone wants to “cut the waste” or “trim the fat”, they’d be trimming the defense budget. Talk about dollars just disappearing! A normal capacitor costs say ten cents. The same “military” grade capacitor would cost you ten dollars.

      • Mark H says:

        Having served in the military for 22 years in the Supply department, your “fact” is nothing more than a cliche.

        The same capacitor costs the same in the civilian world. The problem is that the same capacitor is rarely used as those in the civilian world. The military version has to be hardened to withstand sudden impact, or continue working in strong electromagnetic fields. Otherwise, the plane falls out of the air.

        We can leave the armor off of the Humvee, but people seem to complain when their son or daughter die as a result.

        You will find the same thing within certain industries: e.g. Nuclear Power, where the “same” capacitor must withstand seismic shock, submersion in a steam atmosphere and 20 years of use without replacement.

        The largest expenses in military spending are the large promises and the reserve force:
        1) Paid education after service
        2) Pensions that start immediately after 20 years of service
        3) “Free” medical benefits for the service member and family after 20 years of service

        These benefits do not differ much from the commercial world other than the start date for the last two benefits.

        When I started in the service, I made ~$9,000 per year. After 22 years and several promotions, I made ~$55,000 per year (if you add up all the benefits I received.) I immediately moved into an equivalent civilian job (not government) making $72,000 per year. My retirement pay from the military is less than what I would make if I were on Social Security only. I never use my military medical benefit because as long as I have a civilian job, I am required to use it’s medical benefits first which cost me as much as anyone else. I never used the education portion since I earned my degrees while in the military.

        So why did I bring up education, retirement and medical if they are so low? Because there are a lot of people on these plans and I’m in the lucky bunch that doesn’t have to make use of the them to survive because someone used the $10 capacitor instead of the 10 cent version.

  17. Mark H says:

    I currently pay income tax at the 25% rate which amounts to about $25,000/year.

    My daugther pays income tax at the 15% rate, but due to having four children and electing not to get married, she is able to claim two of her children (as does her “spouse”) by filing separately and manages to get all her income tax returned as well as Earned Income Credit. Her “spouse” does the same. By only working six months of the year, she claims unemployment the other six months, as does her “spouse.” Each income is low enough to recieve Food Stamps, and until recently, subsidized child care. They have no health care insurance, but their children recieve Medicare services.

    Altogether, my “taxes” do not cover the government expenses granted to my two children who have decided to “work the system”, legally to support their style of living. Their life is not grand, but they are comfortable with this arrangement. After all government benefits are summed, they pay no taxes, including gas tax, sales tax, etc.

    People do not gripe about income taxes because they are high, but because cumulatively, all taxes are high. Gas tax (0.3%), sales tax (6.1%), property tax (1%), school tax (3.6%), income tax(25%), death tax, inheritance tax, social security(12%), medicare(~3%), capital gains tax(1%), etc. Altogether, my taxes are in excess of 45% of my income.

    And for the naysayers, yes, SS and Medicare are actually 15%. Your employer may pay half this expense, but that is an amount they are not paying you in wages to compensate.

    It is the government’s way to nickle and dime you so you don’t notice, or remove your ability to actually complain about any indiviual tax because each is so small.

    The system is so convoluted, that even a flat income tax will not repair the problem as long as the other tax programs remain in place. And if you get rid of them all and create a true flat income tax, people would be in an uproar at having to pay a 40%-50% income tax that they already pay.

    • Mark H says:

      One last note on how the government nickels and dimes:

      This year we get a 2% reduction in Social Security as a tax break. (Meaning employee rate drops to 4.2% instead of 6.2%.) For those who actually pay income tax, this means the 2% increase in pay is now taxed at the applicable rates. In my case, that’s the federal 25% tax rate.

      End result:
      My 2% reduction will give me $2,136 back for 2011.
      This will be subject to:
      Medicare: $31
      State taxes: $62
      Federal: $534
      Sales tax: $113
      (ignore any others… its small and convoluted)
      Leaving me:
      $1396 over 26 pay periods, or $54/payday.

      At the cost of bankrupting some entitlement a year sooner. And, an apparent tax hike the following year adjusted for inflation.

  18. Anonymous says:

    why not pass a hot air tax every time a politicin gives a speech or shows up for a photo op we simply tax them at 95 percent of what ever compensation they are to receive boy we could pay of are deficit in about 1 week

  19. Not another Ant following the others says:

    Seems people like Brian at the top of the comments are against “rich people” only because they have been stuck in their rut in life. The difference between rich and poor is only mindset and decisions. How one spends or allocates the money changes ones finances, not the lottery. Change your habits with money as the rich do and you can have the same. Mentality is unfortunately the problem in America today… no one is taught how to make money, only how to spend and work for others. Sad.

  20. connie says:

    I just got a $30 tax raise, on my small pension. People who make more han me got an increase in pay. and I should,t be mad

  21. TexasMarine says:

    Taxes are confiscatory. That’s a necessary evil but that shouldn’t mean the government can rape us. And every US citizen should be forced to pay income tax. Not just the wealthy. 48% of Americans pay no income tax and this is the lower middle class and the poor. But these groups suck up benefits. The government is choking to death on its own spending and we will be the victims. The politicians all believe that they are the ruling class.

    • Kelly says:

      One year I made $34,000 and saw 15% consistently taken out of each of my paychecks. This was filing single w/ no dependants. The only money that I received back at the end of the year was $300 and a stimulus of $400. I really wasn’t expecting anything. I am not sure where you get the statistics of 48% of Americans pay no income taxes but I am sure it doesn’t apply to the single people with no children. What sucks for me is that when I turned 18 I was financially independant and making my own decisions but was required to put down my parents income when applying for financial aid (Again I wasn’t expecting it, but was required to fill out a FAFSA). On paper it looked as though they made alot of money, but of course, their debts are considered personal, and they were expected to be able to pay for up to $17,000 per year for my tuition. I took out student loans while working full time and walked to school and work because I could not afford a car or gas money after paying my rent, utilities, and buying the close to expiration date food at the local Grocery Outlet. Meanwhile one of my co workers was getting her college tuition paid for free because she enrolled in a program to get her GED and one reward was that upon completion of her GED her first 2 yrs of community college were paid for. If I would have known I would be rewarded for dropping out of HS I would have went that route. Another friend who performed sub par in school had her nursing degree paid for because she was hispanic, and her parents definitely could afford tuition (I don’t blame her or her parents because they were HARD WORKING legal immigrants, and I would have taken advantage of it as well if I were hispanic). A class mate had 3 kids by the time she was 23 by 3 different men. She had HUD, food stamps, child care paid for, and received more money than it cost for tuition to go to school each quarter. She also had child support from each father every month. It is frustrating to realize that because I was caucasian, a HS graduate, had not introduced children into an unstable environment, and the government decided that my parents were going to be supporting me until I was 24 years old, I was given the hardest route in comparison to the people who were born into a certain race or made poor decisions. It has been 10 years since that route began and I am still bitter. As you say, taxes are a necessary evil, but who is going to take care of me when I am old and frail, have no children to help take care of me because I refuse to have them for selfish reasons and believe the world is a little too screwed up for them, and I do not have SS or Medicare to help me, although I am paying into it now. I guess I can look forward to being in a skilled nursing facility and hoping that my nurse who has a 1:44 patient ratio will have a good eye and recognize if I have issues so that I don’t have too much of a miserable lonely death. Wait, the 1:44 ratio exists now, and I suppose without Medicare to help pay for staffing at the nursing home…I am pretty much screwed. Thanks, America. I had better off myself before I become to frail to accomplish it.

  22. june says:

    I am waiting for my taxes still i filed on april 14 2011 and i have not received them are they going to mailed now

  23. Steven says:

    Fuck all this shit. I’m for a flat tax. My wife and I are slated to make 400k+ combined once we finish our medical residency. Why should we have to pay 40% ($160,000) of our income when other people get by paying 10% of their income. Tax percentages should be the same for everyone. If you make more you still pay more but at least everyone is paying a more equal part.

  24. The Poor says:

    If taxes should be flat and equal, so should the money. So, if you are willing to split your 400K with the poor, we will be willing to pay our portion of the 160K due for income taxes. You cannot expect the poor in this country to pay the taxes needed to cover the rich’s (rich individuals equals to about 5% of the population)taxes. We deserve help sometimes, just as you rich individuals deserve to give back to the economy instead of constantly taking from it. And there is no need to get angry and curse! Life goes on, especially for you who still have plenty of money even after taxes! :)


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