In the midst of the hysteria by the top two percent over Obama’s tax plan (TEH SOCIALISMZ!! AAIIIEEE!!!), this article by ABC News about people who make more than $250,000 per year and are trying to lower their annual incomes below $250,000 makes one realize that professionally successful and wealthy people can be fucking morons:
President Barack Obama’s tax proposal – which promises to increase taxes for those families with incomes of $250,000 or more — has some Americans brainstorming ways to decrease their pay, even if it’s just by a dollar.
A 63-year-old attorney based in Lafayette, La., who asked not to be named, told ABCNews.com that she plans to cut back on her business to get her annual income under the quarter million mark should the Obama tax plan be passed by Congress and become law.
“We are going to try to figure out how to make our income $249,999.00,” she said.
“We have to find a way out where we can make just what we need to just under the line so we can benefit from Obama’s tax plan,” she added. “Why kill yourself working if you’re going to give it all away to people who aren’t working as hard?”
Of course, Obama’s plan increases taxes on your income above $250,000. It’s not like you pay a penalty on the income below $250,000. I hope she doesn’t deal with tax law (or represent the innocent…):
Because we have a marginal tax system, said Schatsky, what Obama’s plan means is that the amount of tax you pay on each incremental dollar is higher only when your income is pushed into a higher tax bracket.
“But to focus keeping your income below a quarter million dollars is not going to have any spectacular magic for individual tax payers,” said Schatsky. “The difference between $249,999 and $251,000 will probably have zero tax impact.”
Here’s some like-minded ‘wisdom’ from someone who places small power tools inside people’s heads (a dentist):
Dr. Sharon Poczatek, who runs her own dental practice in Boulder, Colo., said that she too is trying to figure out ways to get out of paying the taxes proposed in Obama’s plan.
“I’ve put thought into how to get under $250,000,” said Poczatek. “It would mean working fewer days which means having fewer employees, seeing fewer patients and taking time off.”
“Generally it means being less productive,” she said.
“The motivation for a lot of people like me – dentists, entrepreneurs, lawyers – is that the more you work the more money you make,” said Poczatek. “But if I’m going to be working just to give it back to the government — it’s de-motivating and demoralizing.”
Currently, every dollar over $250,000 is taxed at 35%. Under Obama’s plan that would rise to 39.6%. Even if Obama manages to fulfull his campaign promise of reinstituting payroll taxes on income above $250,000, that would make the total federal tax burden on earnings above $250,000 45.825%–she would still keep 54 cents on the dollar on income above $250,000. Let’s say the good Doctor Poczatek has $500,000 of taxable income. Under the free-market Bush, the ‘last $250,000’ is taxed at 35%, meaning she owes on that half (Mad Biologist takes off shoes to do complex arithmetic)…. $87,500, keeping $162,500. Under TEH SOCIALISMZ!!! (and I’ll include the Social Security increase), she pays $114,562.50, keeping $135,437.50. If Obama doesn’t raise the Social Security cap (MINI-SOCIALISMZ!!), she pays $99,000, keeping $151,000.
Either way, it is an increase, but, even in the worst case scenario, she would still be over $135,000 richer (which is ‘only’ 270% more than the median pre-tax income). I think that would be incentive enough. But if it’s not, I’m sure there are a few well-heeled Democrats willing to pick up the leftover business.
Greed and stupidity: it’s like a Reese’s Peanut Butter Cup, but evil.