About your "tax cut"....

[Smash255]

She raises a good point about people making say 200K-500K where in NYC isn't much at all.  I've proposed this before- creating a whole new tax bracket for those over a cool million a year.  Most of them voted for Obama knowing they were going to get socked with a tax increase and some, even Warren Buffet, think they pay too little in taxes. 

Even in NYC over $250,000 is quite a bit.

[Smash255]

She raises a good point about people making say 200K-500K where in NYC isn't much at all.  I've proposed this before- creating a whole new tax bracket for those over a cool million a year.  Most of them voted for Obama knowing they were going to get socked with a tax increase and some, even Warren Buffet, think they pay too little in taxes. 

Even in NYC over $250,000 is quite a bit.

If you have a family to support, not really.  It's comfortable in the Philly area for a family of 4-6, but not wealthy.  For a place like Shamokin, PA, you'd live like a king with that.  Then again how can you tax regionally?

I do agree that we should perhaps have another bracket at the million mark, but someone who is making over $250,000 is still well off.  Obviously they aren't going to be as well off as other parts of the country, but they are still doing rather well.  Hell look on Long Island (one of the highest income and cost of living parts of the country) its only the top 4-5% that make over that amount.

[Smash255]

She raises a good point about people making say 200K-500K where in NYC isn't much at all.  I've proposed this before- creating a whole new tax bracket for those over a cool million a year.  Most of them voted for Obama knowing they were going to get socked with a tax increase and some, even Warren Buffet, think they pay too little in taxes. 

Even in NYC over $250,000 is quite a bit.

If you have a family to support, not really.  It's comfortable in the Philly area for a family of 4-6, but not wealthy.  For a place like Shamokin, PA, you'd live like a king with that.  Then again how can you tax regionally?

I do agree that we should perhaps have another bracket at the million mark, but someone who is making over $250,000 is still well off.  Obviously they aren't going to be as well off as other parts of the country, but they are still doing rather well.  Hell look on Long Island (one of the highest income and cost of living parts of the country) its only the top 4-5% that make over that amount.

I always have trouble with this debate.  Does the $250K level relate to individual income, or household income?  Also, do "median income" stats refer to individual or household?

The $250,000 refers to the married filing jointly income, but not always household income, for example having grown children who still live at home wouldn't be included.   Median household income would take all the income earners into consideration.  For example lets say you have a married couple which have a combined income of $175,000 and two grown children making $50,000 each still living at home.  The household income would be $275,000, however they wouldn't be in the 250,000 + tax bracket.  The married couple would pay based on the $175,000 they made, and the children would each pay on the $50,000 they make.  Not sure if that answers your question.

[Smash255]

I do agree that we should perhaps have another bracket at the million mark, but someone who is making over $250,000 is still well off.  Obviously they aren't going to be as well off as other parts of the country, but they are still doing rather well.  Hell look on Long Island (one of the highest income and cost of living parts of the country) its only the top 4-5% that make over that amount.

I always have trouble with this debate.  Does the $250K level relate to individual income, or household income?  Also, do "median income" stats refer to individual or household?

The $250,000 refers to the married filing jointly income, but not always household income, for example having grown children who still live at home wouldn't be included.   Median household income would take all the income earners into consideration.  For example lets say you have a married couple which have a combined income of $175,000 and two grown children making $50,000 each still living at home.  The household income would be $275,000, however they wouldn't be in the 250,000 + tax bracket.  The married couple would pay based on the $175,000 they made, and the children would each pay on the $50,000 they make.  Not sure if that answers your question.

Yup.  Thanks!

So when you say that the top 4-5% of Long Islanders make that amount, you're referring to joint income, right? 

Correct

[Smash255]

If I am figuring this out correctly, raising the taxes on those making over $250,000, will actually be in the $290,000 or so range in reality.  The 33% bracket will be eliminated, but the bottom portion of that bracket will be thrown into the 28% bracket.

For married couples filing jointly, $200,300 was the cutoff in 08 between the 28% & 33% brackets.  This year that cutoff is $208,850.   Based on that the cutoff would likely be in the $225,000 range by 2011 as it currently stands.  However, under Obama's plan that cutoff would be $250,000 between the 28% & 36% brackets.  So less tax would actually wind up being paid on the stretch of income from about $225,000- $250,000, 5% less than currently.  You would have to get to the $290,000 range or so for the cut in the $225,000- $250,000 to be canceled out by the increase over $250,000.