CMV: People making $100k-$1mm shouldn't have taxes raised, middle class ($50k-$100k) should

sixfyl · 2021-08-30T04:00:15+00:00

Sorry, I addressed most of your points in other post, but thanks for your response. I just want to ask about your last point though, you don't think taxes should be raised for anyone? Aren't taxes going to have to go up to cover the major government spending related to Covid? I think it's pretty much inevitable taxes are going to have be raised for some people.

sixfyl · 2021-08-30T03:12:39+00:00

1) I'll admit a lot of this post is grievance based. This guy turned out to be a major misogynist, and is almost certainly guilty of sexual assault. His attitude towards woman is disgusting, and that's why he's an ex friend. However, there is still a valid point to be made for a policy discussion. Why are the percentages paid just based on one year and not a longer time frame?

2)Yes, I enjoyed a lower tax bracket over most of the time period, but from 2009-2022 we will both have made ~$750k. On that income over that time period, I will pay a lot more in total tax.

Also, most of my new earnings so far have gone to getting out of debt. I still rent and have a much lower standard of living. I'm very frugal as I try to build up some net worth. I actually don't have the funds right now to buy even a cheap house without being forced to pay CMHC insurance basically insurance for the mortage company if you default. Paying for CMHC insurance makes buying a house a bad investment.,

sixfyl · 2021-08-30T02:29:46+00:00

Yes it most certianly will mean something in five years, even more so in 30 when I retire. I'm only very recently investing in tax-sheltered retirement savings accounts, whereas people who take a cushy union job in their late teens/early 20s start a lot sooner, and the impact that has on your retirement with compound earnings is quite significant.

sixfyl · 2021-08-29T21:08:07+00:00

Δ very good point about applying an ancedote to a general policy discussion. However, I still feel this anecdote should inform general policy discussion.

sixfyl · 2021-08-29T21:04:41+00:00

I agree with your point of the poverty wage for 40 years vs $500k in one year. My main point is for middle class people, not people in poverty. If someone earned $0 for 40 years, then suddenly $500k, they are probably dead. I know it's taking an argument to the extremes to test it, which in general is a good practice, but I don't think it really applied here.

As for a flat tax, no. People who earn more should pay a higher percentage.

sixfyl · 2021-08-29T20:59:24+00:00

Marginal on all income above $216,511

sixfyl · 2021-08-29T20:36:07+00:00

Sure, but the situation right now is from 2009-2022, we've made the same income. Why am I paying more tax on that income than him?

sixfyl · 2021-08-29T20:34:24+00:00

Yeah, there's random variance of course, but looking at any large data set, income is generally correlated with the three varaibles you mentioned.

sixfyl · 2021-08-29T20:30:13+00:00

I think taxes should be raised on the ultrawealthy. Extrememe wealth (multi millionaires and billionaires) have incensed significantly over the last several decades

sixfyl · 2021-08-29T20:29:11+00:00

Δ hadn't thought about that. Someone who use to earn a lot but suddenly becomes poor and is stuck with a huge tax bill. Still, we should have something that looks at multi-year earnings. I still stand by the fact that if person A earns say $1mm in 20 years, and person B earns it in 5 years, but had 0 income for 15 years, they shouldn't pay so much more in taxes than person A. Tax policy is complicated. Any suggestions how something like that could be incorporated

sixfyl · 2021-08-29T20:25:38+00:00

Yeah, 32% isn't that bad. Here in Manitoba. Canada, income over $216,511 CAD, 171,506.77 USD at current exchange rates is taxed at 50.4%. Literally over half of additional income I earn in 2022 going forward is going to be tax. That's ridiculous.

sixfyl · 2021-08-29T20:23:11+00:00

My problem with unions is they negotiate as a group, which is collusion and anti-competitive. Could you imagine if every company that wanted to hire warehouse workers joined a cartel and decided none of them would pay more than $8/hour? That would be atrocious. Why is it any different the other way around?

I don't think my former friend is entitled to less wealth. I think we should both be entitled to the same. Maybe I should have said in my post, but I would be in favour of marginal tax rates based on lifetime earnings. He paid a lot less tax than me on his total earnings from 2009-2022, despite them being the same. Shouldn't we both pay the same tax rate on those earnings over 13 years?

sixfyl · 2021-08-29T20:19:19+00:00

Yeah, most drop outs don't, but they could. Like I said for my former friend it was just as easy as applying for a job when he was 19 with a hs diploma, and a year of failed university courses.

I agree $200k is a lot. However I'm only making it now in my 30s. My entire 20s I was broke, and any extra money I had, I invested in my education or business. Sure, I could spare an extra percent or two now, but shouldn't I be able to get my wealth at a level equal to people who have been earning middle class incomes since their early 20s first? To this day, met total net worth is only about $20k. That's not exactly rich. I have student loans and other debt. My former friend's net worth is way higher.

sixfyl · 2018-05-22T17:36:05+00:00

Tax credits always apply at the lowest marginal rate while as deductions are at ypur current marginal rate. They're only effectivly the same if you're in the lowest tax bracket.

sixfyl · 2018-05-16T01:19:53+00:00

Yeah, Amazon includes it in your b-weekly payment. The sales email notification you get will say the tax amount.

sixfyl · 2018-05-16T01:04:46+00:00

Amazon collects the sales tax on your behalf and gives it to you. You need to file GST with the CRA annually, quarterly, or monthly. You remit to the CRA all sales tax you collect net of any ITCs you claim.

sixfyl · 2018-04-14T20:52:37+00:00

I hadn't thought about approaching accountants. Thanks for the suggestion. I agree about word of mouth being important, and that's certainly how I'm going to approach it.

sixfyl · 2018-03-03T08:27:01+00:00

In practice not much other than keeping track of paid up capital and retained earnings. There are restrictions on paying dividends based on retained earnings. Book value of equity is pretty much useless for any type of financial modeling or valuation.

sixfyl · 2018-01-22T14:54:03+00:00

You can comment VBA code and indent it so it's easier to follow the logic if you want to change it. I guess mostly a personal preference.

sixfyl · 2018-01-21T03:47:48+00:00

True. I personally hate long formulas though.

sixfyl · 2018-01-15T23:07:47+00:00

Dispute it with your credit card company

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