Get to know the basics to be more knowledgeable about taxes
There is a lot of talk now regarding taxes in the United States and there is some basic knowledge everyone who wants to participate in the discussion ought to have. Go check out this article at The American Thinker for more about the marginal tax, the effective tax, the Laffer Curve, and the estate tax.
The discussion about taxation rates is an important one to have because there are very serious ramifications for getting it wrong. Great Britain raised the highest tax rate to 50% (applicable to incomes of £1 million+) and the subsequent year saw 2/3’s of the millionaires packing up and leaving. By raising the rate so high, Great Britain effectively chased away its most productive citizens.
The following is from the article “When Work Is Punished: The Tragedy of America’s Welfare State” and is presented without comment:
…we merely explained what has become the painful reality in America: for increasingly more it is now more lucrative – in the form of actual disposable income – to sit, do nothing, and collect various welfare entitlements, than to work. This is graphically, and very painfully confirmed, in the below chart from Gary Alexander, Secretary of Public Welfare, Commonwealth of Pennsylvania (a state best known for its broke capital Harrisburg). As quantitied, and explained by Alexander, “the single mom is better off earnings gross income of $29,000 with $57,327 in net income & benefits than to earn gross income of $69,000 with net income and benefits of $57,045.“