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Is there a maximum marginal rate beyond which would curtail working as a doc?

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  • Antares
    replied
    I was going to formulate a beautifully phrased post critiquing the proposal, but decided there’s no point in getting political. So I drafted an equally well-drawn analysis of what the strategy being discussed here would hypothetically imply politically. I erased that too, as I decided this is not a place for that. So I’m back to waiting until this happens. I favor poor people having access to healthcare. I also favor working in order to have money. Close to retirement, it’s not hard to imagine that a part time strategy might not be so bad....

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  • MPMD
    replied







    I really wish we would get to a point as a forum where we spent as much time worrying about actual, current financial policy as we do about early primary proposals. I’m not holding my breath on this.
    Click to expand…


    The Bogleheads forum doesn’t even allow discussion of proposed legislation until it passes. Now you know the reason why.
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    That's a bad policy and I hope you don't implement it.

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  • Panscan
    replied
    Well that's kinda silly, the whole point is to decide if something is good or not before you pass it... Wish we could have done that with the ACA

    "we have to pass it to read what's in it"

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  • AR
    replied







    I really wish we would get to a point as a forum where we spent as much time worrying about actual, current financial policy as we do about early primary proposals. I’m not holding my breath on this.
    Click to expand…


    The Bogleheads forum doesn’t even allow discussion of proposed legislation until it passes. Now you know the reason why.
    Click to expand...


    I don't think that's the reason why.

    Leave a comment:


  • The White Coat Investor
    replied




    I really wish we would get to a point as a forum where we spent as much time worrying about actual, current financial policy as we do about early primary proposals. I’m not holding my breath on this.
    Click to expand...


    The Bogleheads forum doesn't even allow discussion of proposed legislation until it passes. Now you know the reason why.

    Leave a comment:


  • CordMcNally
    replied


    didn’t say I was losing sleep, nor did I suggest that legislation is pending. I just find it concerning that there can be mainstream presidential candidates who generate a fair bit of happy chatter when they promise they can fund healthcare for everyone, forgive student loans, fart rainbows, whatever, based upon clawing back money from the rich. figured it was germane observation in the setting of “is there a maximum marginal rate beyone which would curtail working as a doc.”
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    If we get to the point where free healthcare, free child care, free school, reparations, etc. come to fruition, I suspect the definition of wealthy for taxing purposes is going to come waaaaayyyyy down.

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  • G
    replied










    I really wish we would get to a point as a forum where we spent as much time worrying about actual, current financial policy as we do about early primary proposals. I’m not holding my breath on this.
    Click to expand…


    MPMD, I completely agree with you on the one hand.  On the other…I am concerned with the seemingly widespread acceptance of “the rich should/will pay for everything” mendidtality.

     
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    In the last 20 years taxes on high earners like docs went down, then they went up a little bit, then they went back down.

    Obviously I’m oversimplifying this but that’s the general trend.

    There is a 0.0% change of a tax increase on the wealthy until at least 2/2021, at the point the theoretically risk rises by a tiny bit.

    I guess let me know when the mentality you are describing as widespread generates actual legislation that could potentially pass. Up until that point I’m not exactly losing sleep over it.
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    didn't say I was losing sleep, nor did I suggest that legislation is pending.  I just find it concerning that there can be mainstream presidential candidates who generate a fair bit of happy chatter when they promise they can fund healthcare for everyone, forgive student loans, fart rainbows, whatever, based upon clawing back money from the rich.  figured it was germane observation in the setting of "is there a maximum marginal rate beyone which would curtail working as a doc."

    and FWIW, both dollars paid and my effective tax rate went up this last tax reform.

    Leave a comment:


  • MPMD
    replied







    I really wish we would get to a point as a forum where we spent as much time worrying about actual, current financial policy as we do about early primary proposals. I’m not holding my breath on this.
    Click to expand…


    MPMD, I completely agree with you on the one hand.  On the other…I am concerned with the seemingly widespread acceptance of “the rich should/will pay for everything” mentality.

     
    Click to expand...


    In the last 20 years taxes on high earners like docs went down, then they went up a little bit, then they went back down.

    Obviously I'm oversimplifying this but that's the general trend.

    There is a 0.0% change of a tax increase on the wealthy until at least 2/2021, at the point the theoretically risk rises by a tiny bit.

    I guess let me know when the mentality you are describing as widespread generates actual legislation that could potentially pass. Up until that point I'm not exactly losing sleep over it.

    Leave a comment:


  • Lordosis
    replied
    Hopefully someday us primary care folk will be able to complain about our high marginal rate!

    Leave a comment:


  • AR
    replied
    Like others, my marginal is already pretty high, so it wouldn't change anything right now.  When I'm older, it might affect when I choose to cut back.

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  • Raddoc123
    replied
    If I only get to keep 40 cents on the dollar, then I am going part time.  I welcome this because it is the push I need.

    Leave a comment:


  • White.Beard.Doc
    replied
    My combined state/federal marginal rate is almost there, but once the rate gets much above 50%, it starts to feel much less rewarding to hustle to earn more.  Even though we are financially independent, it remains in my DNA to work hard and earn money.  These days, you will often find us playing hard, but in between playing hard I still like to work hard.  Yes, I enjoy the work and it makes me feel needed and useful, but honestly I also like the money.

    In thinking about shift work for docs, the hardest shifts to fill are the undesirable ones.  Once you get to onerous marginal tax rates it will get a lot tougher to cover those open weekend and night shifts when the net take home pay is low.

    In contrast, if I am not earning from the sweat of my brow, but rather have the opportunity as a business owner to make large profits and have to pay lots of tax, high marginal rates likely would not change my behavior much because the income is passive.  That is in contrast to working in the hospital on a Saturday night.

    If someone is going to pay $2400 for an overnight shift on the weekend, there are currently docs willing to take it for the pay.  If, however, you were to take most of the money away in taxes with only $800 take home left, good luck finding volunteers to get out of bed to care for the sick on a Saturday night overnight shift.

    Leave a comment:


  • xraygoggles
    replied
    I'm already at a marginal rate of 49.3%, plus 3.8% NIIT on capital gains.

    If my W2 job wasn't so high paying, I would be looking heavily into rental RE and taking a lower paying job as an IC, or do locums. As it stands right now, I have to build some wealth for 5-10 years before I can transition out of it.

    However, if a new president/Congress does ultimately increase payroll or investment income taxes, I would have to leave CA.

    Leave a comment:


  • Tim
    replied
    •financial- how much is enough?
    •emotional- is it worth my day to work ?

    The greater the former, the less likely the latter is “no”.
    Then it becomes “parttime “, side hustle, second act vs maximizing revenue vs longer making less. Depends again on the former and latter as long as any compensation is involved. At some point, most step off the merry go round.
    “I am making too much money and paying too much tax.”
    Looks silly on a letter of resignation.

    Leave a comment:


  • EntrepreneurMD
    replied




    She will never be president but aoc might
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    I agree aoc may be a rising star, but she can't run now and she can't run in 5 years. The earliest she can run is in 9 years.

    Hard to see an incumbent losing next year if the economy remains relatively strong. So we probably won't have to worry about higher taxes for a few years.

    Leave a comment:

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