Imagine paying 60%+ in marginal tax

Imagine being a director or vp in banking clearing 650-700 having sacrificed most of your free time and missing your kids' birthdays and soccer games just for the gov to take 60%+ of every marginal dollar and over half all in.

 

What's the point?

Comments (154)

 
Oct 20, 2020 - 6:48pm

Well it's all about people right. If it was a 10-20 tax rate or for example a lower tax rate as you earned more we'd have... a bajillion more people 'putting in the hours'

Right now you have people only who have that threshold where that marginal value > other life pleasures. Honestly it feels like mostly not pleasant people because more pleasant people have better things to do with their life, right?

Idk, definitely fewer people but there'll always be someone even if it's a 80% marginal they have their reasons (maybe they even like the work).

 
Oct 20, 2020 - 6:48pm

Well it's all about people right. If it was a 10-20 tax rate or for example a lower tax rate as you earned more we'd have... a bajillion more people 'putting in the hours'

Right now you have people only who have that threshold where that marginal value > other life pleasures. Honestly it feels like mostly not pleasant people because more pleasant people have better things to do with their life, right?

Idk, definitely fewer people but there'll always be someone even if it's a 80% marginal they have their reasons (maybe they even like the work).

 
Controversial
  • VP in S&T - Equities
Nov 4, 2020 - 1:06pm

Don't complain 60%+ tax!

 

If you are going to pay 60%+ tax under new Biden tax plan, then you are the top 5% in the country! 

 

Don't take everything for granted. You earn so much money doesn't mean you are good. The reason you get a high pay job usually because you are luckily enough to born in a family that value education. A lot of minorities don't have this chance. Biden's tax hike will help lower income family get access to a fair  and better education. There is a reason why most of people work in investment banking are white male. You are in a privileged class. If government doesn't tax you, it will only increase inequality in this nation. 

 

In reality, you think you are good but you are really not. If you are really good, go open your own company or fund, you can easily get tax saving under Biden's new tax plan of supporting small businesses. And you are also creating jobs. If you need to work in a big company to get paid well, then the problem is you probably don't even deserve your current wage. Your company overpay you and Biden tax is just a adjustment to reflect your fair value. 

 

So in summary, you are top 5% of nation so you need learn to be grateful. The fact you can't get same level of income through opening your own business meaning you probably are overpaid. And you don't deserve your current pay anyway. If think that's wrong, go open your own fund or business for higher income and lower tax!

 
  • Analyst 2 in IB-M&A
Nov 7, 2020 - 4:04pm

Every time I hear some elitist tell me how privileged I am makes me want to punch them in the face. I grew up in a working class household, neither parent has a 4-year degree and I had manual labor jobs beginning age 14 just so I could achieve the 'American Dream' of working on Wall Street to work 80+ hours a week. To say that the wall streeter who doesn't see their kids more than 2 days a week and has to work until 2am is 'privileged' is just fucking stupid. 

 
Oct 20, 2020 - 7:10pm

Not sure if anyone is paying anywhere near that in tax at that level given comp isn't usually straight salary.

I don't personally mind the tax, but it annoys me because it slows down making new investments/scaling up. I wish other forms of investment were as tax-advantaged as RE...

Edit:
lol at MS. Usually at higher levels a big chunk of total comp comes in forms that aren't taxed as heavily as vanilla income. 

 

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  • Investment Manager in HF - Other
Oct 21, 2020 - 11:22pm

I don't know why you think the MS is unwarranted. Being at a HF, even though much of my comp is tied to performance and some is invested I easily clear those numbers and get a large chunk of my money taxed as ordinary income. I think you are confusing the extremely high earners (8-9 figures) with the high earners (high 6 figure to 7 figures). I can tell you that in the 7 figure range, yes that income is taxed and yes, you clear that much at cash/ordinary income levels. 

 
Most Helpful
Oct 20, 2020 - 7:37pm

I'm in the camp where I'm ok, in principle, with paying a 60% tax rate if the tax burden were equally spread throughout the population (among different wage earners) and I felt that the tax revenue was being spent responsibly and that I actually benefited from the tax payments. I have to hand Northern Europe credit--they've pretty much created a very good tax regime--the middle class and above pay 50-60% tax rate, taxpayers directly benefit from their heavy tax burden, and tax revenues are much less likely to be flushed down the toilet in vote-buying schemes, overseas adventures, and mishandled policies. 

Both parties--at the federal level, especially, but also at the state and local level to a lesser degree--have been entirely irresponsible with tax revenue. I truly feel that a good portion of my federal taxes go down the rabbit hole, and as a result I resent every dollar in taxes I pay. The tax burden is overwhelmingly placed on a very small portion of taxpayers because both parties are trying to stitch together a 50% + 1 majority, and the best way to do that is to implement an overwhelmingly progressive tax system. And finally, taxpayers don't really benefit directly from taxation (obviously, there are indirect benefits). The most obvious example is in Biden's tax proposal, high wage earners will pay more in FICA taxes but will earn no additional benefits--it's just a transfer of wealth. 

The American tax system is absurd and largely immoral. It's perfectly normal to resent paying taxes to these people, who have demonstrated to be nothing but poor stewards of our money.

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Oct 21, 2020 - 12:37am

earlysummer

Any thoughts on Canada? Canadians in major cities like Toronto/Vancouver probably pay a combined tax rate that is similar or slightly higher compared to taxpayers in NY/CA - is the Canadian gov generally better deploying taxpayer money (e.g. closer to Norther Europe than the US)?  

I'm not an expert on Canadian public policy, but I think it does appear that Canada provides more direct benefit for its taxation--healthcare, better schools, better funded retirement program (like most pension funds, it is underfunded, but in the U.S. Social Security and Medicare are catastrophically underfunded--like, riots over it are inevitable). The American public simply refuses to see spending cut or its taxes raised, so the politicians tax the rich in insufficient amounts to finance our disastrous spending policies. 

On the other hand, it's really difficult to compare the U.S. to any other country given our vast amounts of immigration, enormous size, and unbelievable human diversity. The United States is a great nation, but the American public has a self-destructive streak when it comes to spending and public policy that will eventually catch up to us.

Let me add that the waste in the federal government kills my soul. $300-400 billion in uncollected taxes, $200 billion in waste, fraud, and abuse, $200 billion in military waste and abuse. How could anyone feel good about sending their tax dollars to an entity that is so poorly stewarded?  

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Oct 27, 2020 - 8:16am

Canadian here.

We do a better job of holding our politicians accountable than our neighbours to the South ( We had better, "Peace, Order, and Good Government" is in our constitution for fucks sake!), but there is no shortage of waste/corruption North of the 49th parallel.

 

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Oct 21, 2020 - 10:43pm

I want loopholes closed, simplified tax code, taxes lower across the board, moderately progressive taxes that accomplish the government's revenue goals, and smart government funded systems where it's necessary like making healthcare actually work, easy, and affordable. Our government revenue system doesn't work and it's too cumbersome. We also need campaign finance laws that work to make money in politics more equitable as a form of actual free speech. Then the last is to get rid of the systems that make California a written off blue state and Texas a red state stronghold.

 
Oct 22, 2020 - 8:48am

This right here.

In Europe we regularly pay high taxes. In France the highest bracket of tax rate is 50%, Netherlands 40%, Belgium 50% but is charged in a tiered way. Not sure how is it in the US but basically overall we end up paying about net 30% of our salary in taxes since in Belgium for example the 50% bracket starts at 30k+ euros and in France its quiet similar. Though I often wonder where all my money is going given all the governmental inefficiencies it becomes important when you need to visit the doctor or are unemployed since the government covers a large part of the cost. I paid 80 euros for my health insurance for the whole year and a lot of my friends across Europe pay similar rates. Of course you can go ahead and get private health care at a higher premium but most people don't do it.

I don't claim to be an expert on the tax systems but the high tax system is not as bad as it sounds initially.

 
Oct 22, 2020 - 3:07pm

To your point, 30% tax rate net isn't that bad, but in the U.S. literally half the population pays 0% or actually has a negative rate, and I think the top 20% pays 90% of all taxes and the top 1% 70% of all taxes (something like that). To me, this a bad thing. The public has no skin in the game, it has no reason to hold elected officials accountable as stewards of precious resources. To have such an incredibly steep progressive tax system as the U.S. does just effectuates abuse and waste. It really bothers me a lot.

I'd much rather everyone (except the very poorest) to pay something in taxes and for it to be relatively flat (maybe not purely flat, but more so), with more direct benefits and less redistribution. Like I said, I love America and it's an amazing nation, but on this point we've really missed the mark.

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  • Incoming Analyst in IB - Gen
Oct 24, 2020 - 10:11am

Strongly agree with your point on the mishandling of money. Early in the country's history, a majority of high-ranking politicians would build a storied career in industry, become a sector leader, and then choose to run for office. Often some of the best in the biz ran the show, as it should be. Nowadays its the exact opposite, we're stuck with these "career politicans" with very little understanding of profit/loss, monetary efficency, and realistic strategy. The founders roll over in their graves every time one of these clowns gets re-elected just to sit around and collect checks from lobbyists + F500 companies.

Just a general thought. Not trying to reference Biden / Trump.

 
Nov 3, 2020 - 5:44pm

 

Strongly agree with your point on the mishandling of money. Early in the country's history, a majority of high-ranking politicians would build a storied career in industry, become a sector leader, and then choose to run for office. Often some of the best in the biz ran the show, as it should be. Nowadays its the exact opposite, we're stuck with these "career politicans" with very little understanding of profit/loss, monetary efficency, and realistic strategy. The founders roll over in their graves every time one of these clowns gets re-elected just to sit around and collect checks from lobbyists + F500 companies.

Just a general thought. Not trying to reference Biden / Trump.

This seems like exactly the opposite of what the case was.

It was extremely rare for anyone in industry to go into politics.  The Founding Fathers were mostly large landowners, people with the time and disposable income to be involved in politics.  Later on, it was a lot of lawyers, but very rarely merchants or (once you get towards the turn of the 19th century) industrialists.

I would argue that "career politicians" were far more of a thing until the last 100 years.  Party machines were dominant.  Hell, it took until the 17th Amendment (1912) for there even to be direct election for Senators.  Far from being the case where you made your money and then entered politics, the reverse was true.  Effectively you would apprentice yourself to the local machine and rise through the ranks.  Of course, most of those folks were corrupt and enriched themselves at the public expense, but that's a separate issue.

It's only in the last 50 years or so that having huge amounts of money has become a prerequisite to run for office (whether you raise it or supply it yourself).  It is far more likely that you see people of independent means running for (and winning) office in the last several decades.  Lot of reasons for that, including mass media making it easier to advertise yourself, and the enormous increase in running costs (thanks LBJ!) for a campaign, but I think you have this precisely backwards.

 
  • VP in PE - Growth
Nov 4, 2020 - 2:34pm

You didn't get the meaning of tax. Tax is a way of wealth transfer. The purpose of tax is not to benefit you but benefit the society. If you want tax to benefit you, then you are very selfish. If you think government are wasting your tax money, then donate it to charity. You will get tax credit for that as a high earner. I see nothing wrong for Biden asking high earner to pay more. It is the moral responsibility for the top 10% to help rest of 90%, either through charity donation or tax. You don't want to be the 10% that being hated by rest of 90%. If you don't like that, then move to somewhere with low tax, like UAE or Hong Kong. You can still get a finance job there.

 
Nov 4, 2020 - 3:14pm

 

You didn't get the meaning of tax. Tax is a way of wealth transfer. The purpose of tax is not to benefit you but benefit the society. If you want tax to benefit you, then you are very selfish. If you think government are wasting your tax money, then donate it to charity. You will get tax credit for that as a high earner. I see nothing wrong for Biden asking high earner to pay more. It is the moral responsibility for the top 10% to help rest of 90%, either through charity donation or tax. You don't want to be the 10% that being hated by rest of 90%. If you don't like that, then move to somewhere with low tax, like UAE or Hong Kong. You can still get a finance job there.

If you can just make-up definitions out of thin air then "tax" is, by definition, a wealth transfer. Otherwise, for those of us in the real world, a tax is a method of raising revenue for the government. Our competing definitions of what a "tax" is is actually what defines the fundamental political differences between the sides. I don't think taxes should be used to transfer wealth from one person to another; I think taxes should be used to raise revenue to pay for the necessities of government. 

So let me get your logic straight--if I want my own taxes that I pay to benefit me, I am "very selfish", according to you. But if I want someone else's tax payments to benefit me, I am--what?--very generous? Noble? Selfless? Can you not see how your argument defies both logical and morality?

I don't have a problem with high earners paying more. I have a problem with 80% of the population paying little-to-nothing. Because when people pay nothing in taxes but can vote to dispossess others of their income for personal gain then you create perverse incentives. Now, the body politic does not need to hold elected representatives accountable for good stewardship of tax revenue, which is, in my view, why there is so much government waste.

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Nov 5, 2020 - 3:24pm

I understand this take, having lived in the Nordics and seeing my MDs pay 55%+ on their take home I think the gov spends their money pretty efficiently. My question becomes, what is the solution to making the US gov spend money more efficiently, cuz I guarantee that we are never going to pay less taxes than we are currently.

 
Oct 20, 2020 - 7:53pm

right now, If you make $300,000 a year living in California on a w2, you will be taxed $114k. That means that your net pay will be $185k per year, or $15k per month. Your average tax rate is 38% and your marginal tax rate is 48%.

 

NYC is similar...and that's NOW.

 
Oct 20, 2020 - 8:07pm

It is so funny that everyone is freaking out about Trump's taxes. I can not wait to see what lib elites are doing if (when) this actually happens. I'm sure everyone will just give up 62% of their salary out of the goodness of their hearts. 

 
Oct 20, 2020 - 8:14pm

i paid over 55% my first year in the industry on a few paychecks. The 60% # is just income tax. So much more when you add up property, sales, capital gain, etc. Sucks but its become so mainstream nowadays. It's almost as people forget how America got started with the Boston tea party tax revolt 

Money can purchase freedom, if you have the guts to buy it
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Oct 21, 2020 - 11:21pm

Phat

If your 

you're

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

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Oct 21, 2020 - 12:22am

I called this out in another post b4 people in the media threw up that chart. 

 

Few things here, lots of MD's are FOR SURE going to start to "work remotely" and claim traveling while relocating their families to low state income locations. Basically think a bunch of NY MD's moving their families out of the state and then claiming lower taxes by working remotely there and traveling to see clients (once coivd is over)

 

OTHER than that, the ones who make out like BANDITS? lmaoooo the tech dudes in SF with stock options that vest, carry it for 1 year post vest, liquidiate. Assume your sub sr director level you pull 1 mil cap gain to ordinary income tax plan.

 

That MD making 800k, if he's a dumbass and stays in CA. you are gonna get your ASSHOLE ripped out. Payroll tax on your ass above 400K and below 137K, take that to the dome lolol. 

 

/ rant done. 

 
Oct 21, 2020 - 1:37am

I do not believe for a second that Biden will be able to raise taxes or the corporate gains rate if he does win. The polls are tightening in many senate races and even for the presidency, so the likelihood of a democratic sweep is decreasing. Also, in my opinion, wall street donors to Biden's campaign and other democratic senate candidates won't let it happen. The power of money in politics is strong, and the government is very inefficient.

 

On a separate note, I can't imagine a world were Biden raises taxes during a pandemic. And if he doesn't, Fox and other conservative outlets will spin the administration as a leftist cabal that is terrible for the average American, leading to landslide republican victories in congress for 2022. This would probably kill any hope of tax reform, resulting in a presidency similar to Obama's post-2010 administration.

 
Oct 21, 2020 - 7:39am

In general, I support raising taxes on people who earn over 400K, as it only effects a very small percentage of the population.  I do not think raising taxes on this part of the population is going to impact spending all that much. For selfish reasons, I do not want to see any changes to the tax break that pass through entities such as LLC's and S corps get.    If we do raise taxes, I would like to see the money spent wisely, meaning allocate the funds to things that people need like education, healthcare, and improving our transportation system.  With that said, I do not think the timing is very good, as we are just getting out of a recession and future economic output is very uncertain with the COVID problem not going away any time soon.  

http://www.series65examtutor.com
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Oct 21, 2020 - 8:24am

Bruh the top 1% of tax payers already pay like what, half of all taxes? Making over $400k in NYC just to pay 62.6% tax rate is absurd. I seriously highly doubt Biden is able to do it, but it doesn't mean that you should vote for him if you are afraid of high taxes. The left is clearly headed the direction of higher taxes regardless. I think most people are fine with paying more taxes if the money was directly beneficial to their life in tangible ways or lower the deficit, but this type of tax rate wouldn't even put a dent in the increased spending Biden proposed, so deficit will grow even more!

 
Oct 21, 2020 - 4:01pm

Where does 60% come from? Seems like it'd be a max of just over 40% in income tax if you live in NY if you have no extra deductions. Then there's another 2.25% in property tax if you have a nice home. I am no expert though. Trump got rid of the property tax deduction so I imagine a lot of suburbanites will go against him if they previously supported him. 

 

What I don't understand is why someone would live directly in NYC and pay so much extra taxes. I don't see why you wouldn't live 10 min away in Jersey City, Hoboken etc. My parents' idiot tax accountant made them pay NYC income taxes for years (eventually got refunded when they discovered it) even though they moved out of the city 10 yrs ago lol. It's a lot of extra money.

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Oct 21, 2020 - 5:16pm

Interesting. I think that new social security payroll tax is generally fair because the poor have been paying a higher percentage of their income in social security tax relative to the wealthy under the current system. Biden better ensure that extra money goes to good use fixing the social security funding shortfall. I do agree that the wealthy pay an extraordinary percentage of the revenue from individual income tax. Biden is claiming that he will add back the property tax deduction that Trump removed which should ease part of the pain on high earners in the tri state.

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Oct 21, 2020 - 4:25pm

Also, anyone think sales tax shouldn't be so high in NY? Decrease it overall, decrease it further for purchases made at small businesses, increase it for tobacco (the more people quitting smoking because of this the better), increase it on soda, legalize marijuana and tax it. Seems like something that could really help retail recover post pandemic.

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  • Prospect in PE - LBOs
Oct 21, 2020 - 10:00pm

I wonder if a good idea would just be to get rid of corporate tax and then implement a 15% flat tax that covers all capital gains, so executives that don't earn a conventional salary can't avoid taxes on equity appreciation. On one hand I feel like this would encourage more offshoring of incomes to tax havens but for 15% maybe it wouldn't even be worth it.

You encourage corporations to stay or enter the country, and dividends/appreciation on stock from compensation is taxed without any weird $0-dollar-salary-to-avoid-capital-gains scenarios.

 
Oct 21, 2020 - 10:19pm

If anything, this 60% marginal tax rate on incomes over 400k is overly broad. I think the bigger issue is that when people refer to the "top 1%", they think of millionaires and billionaires living it up in life, but it's really your pretty well off, perhaps better than average doctor, lawyer, upper management etc . There is an incredible amount of income diversity within the top 1% that is very important to acknowledge that seems to get lost within the conversation. 

 
  • VP in S&T - FI
Oct 21, 2020 - 11:07pm

I'm not saying I agree with the current state of taxes on high earning W2 professionals, but its very easy politically to tax higher earning W2 types.  

1. You are taxing a very small percentage of the population, who has no real influence.  Your votes don't matter and you don't have enough money or power to have any real influence.

2. You can't go after the entrepreneurial/C-level class, those people have enough money and power to actually influence things.  You can't try to tax Zuck, he has the influence to fuck you and the resources to figure out a way around it but you can tax the thousands of people who work at FB that he pays 500K plus a year. 

3. The 500K plus W2 earner is much easier to go after that the guy earning that from something he owns (small business, real estate, etc.).  The IB director making 750K does not create any jobs, he most likely did not have to "risk his own capital to get there" just happens to be the guy sitting in the seat at the moment.  The small business owner making 500K a year and employing 100 people is much harder to tax politically than some wall street banker.  This concept of taxing the successful blue state professional sells very well to most of the country because they don't know anyone in that group.  

In a roundabout way the government is doing its best to encourage its most successful people to leave their cushy W2 jobs and go out on their own and try to create something.  We all know how hard starting your own business is but the incentives keep getting better to give it a go.          

 
  • VP in S&T - FI
Oct 22, 2020 - 1:09am

Me neither, and I don't forsee that happening but I would imagine starting or joining a private practice where you can get equity ownership is going to become much more attractive.  Also medicine is not nearly as lucrative as it once was and most people who do it actually enjoy the job and are not just in it for the money.  All that being said who knows, whenever the status quo is changed there are always un-intended consequences.          

 
Oct 22, 2020 - 12:52am

1. Many people who support higher taxes don't want to pay the higher taxes. They want other people to pay it for them.

2. I know many Liberals who call other people "Gold Diggers" yet they want UBI, free healthcare and free education. Doesn't that also make you a "Gold Digger"?

3. Countries like Canada and others in Scandinavia (Finland, Sweden, Norway and Denmark) use their tax revenue to fund welfare, healthcare and education because they have it easier than everyone else. For example, Canada doesn't have to fund their military or border patrol that much because the USA does it for them. The USA indirectly funds the Canadian military/border patrol because when our country and borders are safe, that usually means Canada is also safe. Now apply the same logic to Scandinavia because these nations barely spend on their defense. They basically live off the money and protection of the USA, other European nations and NATO despite most of them not being official members of NATO.

If America, the UK and Germany stops funding NATO and refuse to defend other nations (hence adopting isolationist policies), Canada and Scandinavia must increase their military/defense spending. This means higher taxes or redistribution of current spending. 

Also their is no point in comparing the USA to Canada/Scandinavia because the USA is a Superpower while those other nations will never be that powerful.    

4. Almost everything bad in politics is born through envy and hatred of individuals who are wealthier than them. Communism and Fascism became big last century because people were jealous of the rich.

 
Oct 22, 2020 - 1:38am

Point 3. on Scandinavian wellfare being based on living off the protection of the US military. LOL. 
Also, "having it way easier than anyone else", imagine living next to russia on the fucking north pole with a small population living off the export industry, but not being cost competitive. 

Congrats on the superpower thing. It's really cool.

 
Oct 26, 2020 - 3:47pm

Tricky Triangles

What's it paying for?

social security? Complete garbage

medicare? Dumpster fire 

lockdown stimulus? Lockdowns were the worst policy decision in last 50 years and worst economic decision ever. Let the supporters pay for it 

The supporters do pay for it.  Who do you think pays the bills in this country?  It sure as shit ain't mouth-breathers in Kentucky or Mississippi.  It's wealthy wage earners in NYC and California.

 
Oct 22, 2020 - 12:16pm

My question with all of this is: can anyone point to where this money will be going and if it will add any value (read: quantifiable) to lives in the US. I am all ears, really not being sarcastic. Anyone in favor can answer this question. 

 
Oct 22, 2020 - 3:10pm

My biggest problem with this hike is what another poster mentioned. It's not going to be able to finance shit. It's just a wealth transfer. If the american middle class want the services european countries have, they have to be ready to pay the taxes. Until then this is just big stage virtue signalling.

 
Oct 22, 2020 - 3:10pm

My biggest problem with this hike is what another poster mentioned. It's not going to be able to finance shit. It's just a wealth transfer. If the american middle class want the services european countries have, they have to be ready to pay the taxes. Until then this is just big stage virtue signalling.

 
  • Intern in IB-M&A
Oct 22, 2020 - 3:45pm

The idea that the one percent arent paying their "fair share" makes me actually confused. The 1% pays 40% of all taxes..... 1/2 the country over the age of 18 don't pay a dime or get money BACK from taxes (not including social welfare programs)... How is paying negative taxes more of a "fair share" than a guy working 90hrs making 1 million paying 60% of that in taxes. 

 

Really unpopular opinion. I think there should be a law that prevents people from paying over 50% of their salary in taxes at any time. (state and federal included). 

 
Oct 26, 2020 - 3:49pm

Mesutozil10

This really is part of my political philosophy. Taxes should never go over a 50% effective rate person i.e no one should pay more than 50% of their income in taxes. Regardless of the amount.

Why?  What's the justification for this?  And why 50%?  Why not 5%?  Or .05%?

If you don't want to pay more than 50% of your salary in taxes, don't earn so much you end up in the highest brackets.  Or earn it and give it away and take the charitable deduction.

Unless, maybe, people are actually happy to make the extra $10, even if they only get 4 of it back?  As if perfect maximization of income wasn't the only goal most humans have?

 
Oct 22, 2020 - 4:59pm

Leave the income tax shit alone. INCREASE the capital gains tax (beyond a certain level of investment assets), get rid of carried interest and real estate deductions and other loopholes.

Plans like this penalize new (earned) money and let old (inherited) money continue to pay a lower effective tax rate. As an American that loves the hustle, I love new money. Fuck old money.

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Oct 22, 2020 - 7:35pm

It's kinda crazy that with all this fed-driven financial asset inflation, they haven't already raised capital gains. I get the argument that you created something, you're already paying taxes on the corporate profits, etc. but so much (most? All?) of the decade long bull run is just subsidized by the fed so why not tax it. I'm not an economist so I may be missing something but it seems pretty straightforward. 

 
Nov 7, 2020 - 2:47pm

Sequoia

Kind of random, but I thought you worked in SS equity research? Might I ask why you transferred to corp fin? Can see some overlap in skillsets but from reading some of your prior posts thought you wanted to go buyside

I got the chance to get good comp/equity at a promising startup and took it.

We'll see where life takes me. Maybe I'll end up on the buyside down the road.

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Oct 22, 2020 - 5:14pm

Everyone is so drunk on love with Biden that the hangover is going to be hilarious. Once it wears off and everyone realizes we have a president with late stage dementia and you are giving away 60% or more of your salary with no tangible benefits to anyone in society, reality is really going to sink in.

retort: BuT TrumP baD! Yeah I know, but things will be BAU under Biden and we will get ass raped in taxes.

 
Oct 26, 2020 - 3:56pm

Lester Diamond

Everyone is so drunk on love with Biden that the hangover is going to be hilarious. Once it wears off and everyone realizes we have a president with late stage dementia and you are giving away 60% or more of your salary with no tangible benefits to anyone in society, reality is really going to sink in.

retort: BuT TrumP baD! Yeah I know, but things will be BAU under Biden and we will get ass raped in taxes.

No one is "drunk on love" with Biden.  We just understand that even a POTUS who does nothing is better than Trump.

Second, we already have a President with dementia, or at least far worse mental impairment than Mr Biden has shown.

I can say with perfect honesty I'd rather have 75% of my salary get taxed than watch Trump and McConnell continue to try to turn the country into a theocratic dictatorship.  I don't like the idea that my life choices will be dictated by a fake book written 2,000 years ago.  I don't like the fact that the guy who runs the country has made it explicit that he doesn't care for my best interest, only his own, and those of the people that will stroke his ego and allow him to continue to demolish democratic norms and pillage the public coffer at will.  I think there are principles at stake that transcend policy and I'm willing to vote for whoever I think will uphold those principles.  I think black people deserve a vote, and deserve to be treated as equal citizens under the law.  I think sexual orientation or identification shouldn't matter when it comes to enjoying all the benefits open to American citizens.  I don't think women should be literal slaves to a small minority of the religious right, solely because those people are hypocrites who don't want a traditional male-dominant social order to be overthrown.

All of those things matter more to me than my taxes.  If you vote for Trump, you're making an explicit commitment to white nationalism (and by extension terrorists), to depriving women of agency over their own bodies, for a whole host of other outright evil shit that he has also stood behind.  Again, fewer dollars in my pocket are nothing compared to that.

 
Oct 22, 2020 - 5:34pm

TAX FUCKING CAP GAINS. ESPECAILLy the fucking stock based comp people hold for a year and then fuckin sell at a 20% rate. like what in the actual fuck how does that work and benefit society?

 

Stimulates investment? 

 

NO THEY WERE GRANTED IT IN THE FORM OF STOCK. Stocks are exaclty what that dude from wolf of wall street said IT"S A WAZZIE IT"S WOOZIEE. the fuck my friend's 150k / annual option vest doing for society. 

 

 
Oct 23, 2020 - 7:49pm

Why don't all the limousine liberal elites of nyc, sf, seattle and la just send the irs more money if they believe in this issue so much.  You can donate money to the irs(serious).  

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Oct 25, 2020 - 11:28pm

The bottom line is that progressive tax systems are solely designed to win a majority of votes by punishing only a minority of people. Think about it, wouldn't society be much fairer if everyone paid a flat tax rate? Theoretically, suppose the US government only needs an average tax rate of 25% to cover its annual expenditures. Instead of taxing all taxpayers equally at a rate of 25%, the government would much rather tax the low-income majority of people less than 25% and the high-income minority of people more than 25% in order to achieve a weighted-average tax rate of 25%. That way, the majority of people will benefit and vote for these scumbag politicians while the minority of people will be defenseless and have to pay the higher tax rate.

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  • Analyst 1 in S&T - Equities
Nov 7, 2020 - 6:09pm

My guy Mitch McConnell is not going to let that happen. It's so funny how amped everyone is on Biden because noooothing is going to happen over next 4 years. This was the best case scenario because now people are so happy, taxes are staying the same, and Biden is a no show. Things would have been bad if they swept and fired off the "green new deal" and a shit load of taxes. That's a pipe dream now for idiots.

 
  • VP in IB - DCM
Nov 7, 2020 - 7:49am

Tax 60% on top 2% is one of those things that is easy to implement. It is such a small population with no real power to influent anything, Ultra rich in this group will actually support this act for good PR.

 
  • Prospect in IB - Gen
Nov 11, 2020 - 8:23am

No doubt. Most of people on this forum are useless for McConnell. High earners of this forum doesn't have public influence. You vote doesn't matter neither. Adding tax to you will make rest of 98% American happy and cheerful so why not? 

 
  • VP in IB - Restr
Nov 11, 2020 - 9:10am

I don't understand why America need tax at all. We can print unlimited money. Then use new money we print to pay old debt. As long as dollar is strong, this business model totally works. We don't need tax. If any country's currency dare to challenge dollar's world leading position, we can destroy their economy and may be even start a war on them. But why do we even need to worry about it? Dollar will still be the most beautiful piece of paper in the world. We don't even need to worry hyperinflation, we print more money, force other countries  take them to get stuffs for free.Congress should lift debt ceiling, get rid of tax and print more money!!! 

 
  • VP in IB - Restr
Nov 11, 2020 - 9:15am

It is even okay unlimited QE hurt our economy. As long as we figure out a way to screw up other countries, USA will still be number one and money will continuously fly to us!!!

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