Bigger companies are usually pretty professional about these things. (Completely different domain, but just look at Apple and Samsung being in court while Samsung still being a supplier for Apple.)
Bigger companies are usually pretty professional about these things. (Completely different domain, but just look at Apple and Samsung being in court while Samsung still being a supplier for Apple.)
For bank tellers, I believe this is tracked via the federal agency FINRA, through AWC submittals. For the Wells Fargo employees, you likely are thinking of the brokers who were ordered by Wells Fargo management to fraudulently open accounts. Allegedly, many of these brokers then found out later after they were terminated from Wells Fargo that the bank marked their termination on a U5 form in a manner that all but ejects them from the financial services industry, forever [1]. In both of these cases, they are via mandatory regulatory notifications, and not like the Japanese cases discussed here where it sounds more informal.
[1] https://www.nytimes.com/2016/11/04/business/dealbook/wells-f...
http://www.npr.org/sections/money/2016/10/28/499805238/episo...
I'd make that trade any day, but then again that's just one industry and I'm just one person.
When you combine it all and compare the amount of benefits and safety nets provided to other countries it kind of feels like you're being screwed. I guess getting paid more is nicer but raising children here and realizing that they may not make nearly as much money while having such small or irrelevant safety nets is a sobering experience.
So I call bullshit. Marginal income tax rates are always higher than effective income tax rates. The only way you are paying a 50% tax rate is if you pretend ALL of your income is taxed at the 43% I mentioned AND you count FICA as a tax.
Every time someone take about simplifying the tax code, I bring it up. It will hurt me as well (I'm poor) but it is ok.
If you're in the tax bracket to pay 40%, I'd say I want to raise your taxes you pay but I also want to raise the taxes your overlords pay.
I want higher taxes so we can offer the same services to the wealthy that we offer to the poor. It is the right thing to do. We don't have too many wealthy people in this country. We should be able to include everyone. Can't afford to include people who make too much money? Too bad. The program can't exist.
I would want to create a consensus towards "no income checks". The government should not have any program that qualifies people based on income or assets. Be it Medicare, social security, or Medicaid, food stamps, college tuition, rent subsidies, school lunch or whatever. You should not be able to exclude anyone because they make too much money or have too much money.
Of course, economists will say this is stupid and inefficient and irrational but I say economists are not even people. Nobody is rational in the real world.
It's not that complicated. In order for you to have a 40% effective tax rate (including Federal, State, Local and FICA), assuming you ONLY took the standard deduction and you file single, you'd need an income of just over $450,000/year.
https://smartasset.com/taxes/income-taxes#VL01ZILZtI
That assumes you have 1 exception, no deductions for retirement (which would actually reduce your effective rate) and only taking the standard deduction (you can't get lower!)
In fact, if you want to tax EVERY POSSIBLE tax into account (sales, property, fuel, etc), you'd need to make $300,000/year to achieve a 40% effective tax rate across all taxes.
So either you make a mountain of money, you have a terrible accountant, or you are lying.
If you earn much more than that, generally companies find other ways to pay you (equity, deferred compensation, etc.) that have more administrative overhead, but less of a tax hit.
And yes, FICA is definitely a tax. A regressive one since the rate goes down the higher your income is, but it's still a tax.
Well yes, if you are in the top 1% of wage earners in the US your effective tax rate is going to be pretty high. In fact, you'll pay around $200,000 in taxes on that, give or take (if you live in a high-tax state like California). But that's literally affecting 1% of the population, and they're probably doing ok.
> If you earn much more than that, generally companies find other ways to pay you
Most companies give equity in the form of RSU's rather than options, so income taxes hit immediately upon vesting.
> And yes, FICA is definitely a tax.
Yes they are a payroll tax, but just "adding" them into your income taxes is extremely misleading. Income tax is just that. FICA is a payroll tax.
Incorrect.
The highest marginal rate kicks in, for married-filing-jointly, at just over $470K; the next highest at over $416K. You have to making close to $1M in taxable income for a married couple to be paying the top marginal rate on most of their income, and over $800K to paying at least the second-highest marginal rate on most of your income.
At $500K, you're just barely paying at least the third highest marginal rate on half your income.
That is as it should be. Is there something wrong? The only problem is that people above you are able to weasel out of their taxes, but the fact that you're in the top bracket means you're rich, you made it. Congratulations! Enjoy the high quality meats! Consider lobbying your Senator to close the loopholes.
If you are paying 50% tax, then you are being ripped off by your country because you are not gaining anything in exchange for paying all that money AND giving up all those protections.
We have those protections in the UK and they are similar across all of the EU. The highest rate of tax in the UK is 45% and you only pay that on anything you earn over something like £150k ($200k) per year. You have to pay ~2% to national insurance as well, but this is much much cheaper than private healthcare in the US. Local tax is pegged to the value of the house you live in and is typically between £0.8 and £1.5k ($1k-$2k) per year.
Close-to-50% total taxation is unfortunately pretty common in the West welfare states and yes, you're not getting your taxes worth.
> and yes, you're not getting your taxes worth.
Thats debatable :) The US has a live expentancy as low as Cuba, very high crime rates, very high violent crime rates, low trust in society, massive homelessness, bad schools (but good top universities), bad care for the mentally ill, horrendous working conditions, ...
As far as quality of live per GDP per capita goes, the US is among the least efficient of all industrialized countries. Just think about the fact that Cuba manages to archieve the same live expectancy as the US with 1/6 of the GDP per capita of the US!
It's not a trade, it's just a temporary result of a market imbalance. When that stops to be case, programmers will get the same bad treatment like everybody else.
So I'd make rather live in a country with more sane and fair laws for all, and not extrapolate too much from what a specific field or two (even if it happens to be mine) might temporarily command.
That temporary result has been going on for a few decades now. And it's only getting better for the engineers, because more and more tech companies need more and more employees and for the most part, CS degrees still remain difficult to get (relative to some other degrees).
So I agree it's temporary, however it will probably last until after my retirement short of another .com bubble.
Software developers at the top end are better positioned than many for that but even if your job isn't directly exposed that's going to contribute to pressure against wage increases and respect, especially since senior management is going to keep seeing comparatively high labor costs.
At the end of the day, I'm not going to plan my life around my job suddenly becoming less valuable.
That really was not the case before the Netscape IPO or for about 5-6 years after the dot-com bust.
And I've worked in both the US and Canada and I'd say there isn't much difference beyond the paid time off for parental leave.