High tax rate....am I missing something?

[jacoavlu]

just wait

[racelari]

just thank the lord that you didn't settle next door to NJ where I live- my marginal tax rate in NJ is 9%, 6% effective, and no 529 deduction. Gonna pay $40,000 of NJ state income tax and 250K of federal this year, and that's maximizing deductions on an income of 850,000 including maxing both our 401k's, putting some in solo 401k, mortgage interest and taking the 10K SALT.

things only gonna get worse with all democratic government

[dennis]

Don’t feel too bad. We live in a very high tax state. We pay 46% marginal and for 2019 we paid 42% effective.

Our effective tax rate will be significantly lower in 2020 due to some tax benefits relating to the pandemic legislation, and significantly lower again in 2021 if all goes as planned with increased real estate paper losses and bonus depreciation.

Don't count on the bonus depreciation. With the Dems now in total control I expect them to quash Trump's 2017 tax law as Biden has promised, which will eliminate the bonus depreciation.

[White.Beard.Doc]

Don't count on the bonus depreciation. With the Dems now in total control I expect them to quash Trump's 2017 tax law as Biden has promised, which will eliminate the bonus depreciation.

Very true, things could change. Although many predictions are that tax increases will come in the 2022 tax year, we just don’t know. Once total marginal taxation is over 50%, it becomes a huge incentive to work less. Profits are one thing, but actual W2 work becomes undesirable. Maybe I need that incentive.

And at the same time, I feel sorry for the scheduler who has to try to get docs to cover extra night and weekend shifts in NYC when the marginal tax rates hit 60%.

[Tangler]

nothing fancy. just the same old same old.

have more kids
buy a bigger house
give more to charity
make less money
move.

Yes, welcome to the club.

When i became an attending in 2005 i was surprised too.

I was so excited to finally be making money and to be able to attack 300k of loans, but saddened to see my extra call/work $ taxed aggressively.

Tax man only looks at income not the fact that you: gave up 20s, owe student loans, made nothing for last 10 years, negative net worth, no savings, late start etc.


Taxes: First world problem, and it does seem unfair but falls under rule # 1 of life.

Life’s Rules:

Rule 1: (Hold up 1 finger) Life is not fair.

Rule 2: People are idiots

Rule 3: People are crazy

[Tangler]

Don’t feel too bad. We live in a very high tax state. We pay 46% marginal and for 2019 we paid 42% effective.

Our effective tax rate will be significantly lower in 2020 due to some tax benefits relating to the pandemic legislation, and significantly lower again in 2021 if all goes as planned with increased real estate paper losses and bonus depreciation.

i hope so! You deserve it!

[PharmMedMD]

Don't underestimate how much these tax rates can go up. I live in Tokyo where my marginal tax rate is a little over 55% (national + local) and my effective tax rate on earned income was a little over 48% in 2020. More reasons for taxes to increase for high income professionals in the US than decrease.

[Peds]

no OP and you all are devolving.