How did you come to this conclusion? Is it the lack of social safety net that opens opportunities? Does the lack of parental leave open up opportunities for mothers to breastfeed? Or having to work multiple jobs open up opportunities to spend time with one’s family and participate in the community?
I'm sorry, but it's not a belief, I've estimated it fairly accurately and you can as well.
Effective tax rate (from my income):
Income Tax:
- 26.72% Federal
- 4.33% Social Security & Medicaid
- 4.95% State
Investments:
- Investments 15-45% (EDIT: on capital gains)
Additional Tax Burden:
- Sales: 10% (of goods purchased)
- Property: 2.35% (of home value)
- Inflation 4% (of wealth maintained)
Then there's all these others fees & excise taxes: licenses, fuel, tolls, alcohol, tobacco, firearms, etc, etc.
Finally, you have import duties on any goods you or any company producing goods for you are importing, typically 0-10%.
You may think tolls are something cheap, but it's $3-5 per toll (I pass 200-500 a year). Licenses for my vehicle(s): $500. Fuel: $0.392 tax per gallon.
Fuel Taxes: https://www2.illinois.gov/rev/research/taxrates/Pages/motorf...
Toll Rates (cars): https://turnpikeinfo.com/toll-calculator.php?road_name=tri-s...
Toll Rates (trucks): https://www.illinoistollway.com/documents/20184/86147/2020+T...
Freight Duties Estimator: https://www.freightos.com/freight-resources/import-duty-calc...
EDIT: Previously said: "on investment revenue"
Why are you calling it investment revenue? Its either income or a capital gain or its stuck inside of a C Corporation and doesn't really have to be paid to you?
You are also adding inflation as a separate line item. Wow.
And on everything else, even Illinois isn't that complicated.
You are being penalized because you aren't paying attention to the market and somehow doing the most inefficient things.
I'm guessing a pass through LLC designated as an S-Corp importing humans from a sanctioned country and making them pay rent in your house after ferrying them up the Mississippi river all the way to Chicago and driving them in your pre-catalytic converter truck to the suburbs. Have you tried SaaS?
Fair, will edit to make capital gains. It's late, tired -_-
> You are also adding inflation as a separate line item. Wow.
Inflation is a separate line item and it's effectively a tax. Since 2000, the dollar has lost >35% of it's value, i.e. you can purchase 35% less. They've also changed the way inflation is calculated in that time, it's likely even higher. As an exercise: If you gave someone land, but every year took x% of it -- they'd call that a tax.
> You are being penalized because you aren't paying attention to the market and somehow doing the most inefficient things.
Not really sure what you mean, if it's regarding taxes, I was pointing out how I could be paying 60%+ in taxes. I know there are rebates, discounts, etc but (A) a lot of people don't know these and (B) when you earn enough that disappears. The general point was 60+% taxes is real.
As it not something you pay to the state, why not add your healthcare premiums while you’re at it.
If you have assets look into charitable contributions. You can donate a portion highly valued illiquid business interests to any charity that will take it and reduce your own taxes for years.
Municipal governments are affected the same as you are.
And the federal government which issues the currency is also mostly adversely affected while marginally helping it (and all borrowers) defer paying off its debt. The additional money in its coffers is from its own creation* and doesnt help it purchase more (for long) as it has the same purchasing power and liquidity in the global market.
Its revenue sources, which are mostly tax these days, are distinctive from inflation.
*us treasury issues USD bonds, fed buys USD bonds from everyone including the us treasury creating new USD at the moment of transaction. Sometimes the US treasury is the recipient, other times the other investors are
It's not a tax on income. It's a tax on past income. If you keep switching jobs and invest your money you shouldn't have to worry about inflation at all except when it's too low.
The reason why it exists is that we don't want old money to dominate the economy, the other reason is that demand for USD is legitimately going up.
I don't think that's the case, the price of dollar against other currencies does not indicate that.
For now it is a non-negligible factor
(I’m not the person you replied to, and they didnt mention other currencies, just adding to the discussion)
How did you come to the alternative conclusion?
Ask not what your country can do for you, but what you can do for your country.
> Is it the lack of social safety net that opens opportunities?
There are a LOT of social safety nets. I pointed out one in my prior comment -- Medicare and Medicaid. I'd argue that's actually the cause of our price increases in medicine, but they do provide effectively free healthcare. I'm not sure how many poor people you know? But I grew up in a poor area, and I can tell you, no one had their primary concern as medical care. No one was worried about food, no one was worried about shelter. I've lived with people who their entire lives have never found or wanted to find a job, they've survived entirely off what the government provided. I know at least ten people (several in my family), who live like this.
> Does the lack of parental leave open up opportunities for mothers to breastfeed?
What type of question is this? You have to choose to be a mother, if you cannot figure it out, you probably shouldn't have children.
> Or having to work multiple jobs open up opportunities to spend time with one’s family and participate in the community?
My entire family has worked multiple jobs at one point or another? For reference, if you work on a farm (as some of my family has) you work every day; usually ten hours. I don't really see the difference here.
That being said, I dont' know what you're saying?
I understand the history of that term, but in this context it seems inhumane. Asking for additional sacrifices from people who are already struggling to afford access to medical care is deeply fucked up. Giving back (to your country/community/world/whatever) should be an ethical obligation, sure, but not one that kicks in when you're still struggling to attain some very basic needs.
Like, I understand your point that safety net programs are available to many (though I don't necessarily agree--food insecurity numbers and medical bankruptcy rates seem like pretty compelling counterpoints). But coming out with "ask what you can do for your country" when talking about a country's least affluent population seems crass and disingenuous.
Why should I expect that hospitals will drop their bill 80-90% after I go in? My expectation is that bill collectors will try to get reimbursed for as much of the bill as they can. This article mentions about half a million went bankrupt in 2019 due to medical bills.
https://www.google.com/amp/s/www.cnbc.com/amp/2019/02/11/thi...
You mention America being a land of opportunity, but now that I’m self employed, I’m looking at places outside of the US to persue entrepreneurship. This is partly due to the sky high medical costs here.
We all have a right to speak. I also suggest you have an open mind as these are topics I've experienced and then further researched. How is it your place? I've shared my experience being poor and what I have seen. I try to share what personal research and experience has taught me.
> Why should I expect that hospitals will drop their bill 80-90% after I go in? My expectation is that bill collectors will try to get reimbursed for as much of the bill as they can. This article mentions about half a million went bankrupt in 2019 due to medical bills.
I used to work at a medical billing service, they managed tens of millions in monthly billing (with millions of accounts annually). I personally used to reduce bills for hospitals by 80-90%, typically for hundreds of people a day (I was one of many). If you speak with a hospital and are below a certain income, they will reduce your bill. It's subsidized by those with insurance, hence the high medical costs nationally. Typically, insurance is paying 3-20x the medical procedure cost; medicare/medicaid pays around 20-50% of what insurance will pay.
> You mention America being a land of opportunity, but now that I’m self employed, I’m looking at places outside of the US to persue entrepreneurship. This is partly due to the sky high medical costs here.
I mean, do what suits you. But I find this interesting, I spend ~$9k a year for some really great health insurance (my family included in this), with potentially $5k out of pocket. I can also tune it (unlike taxes) and could really only spend $1-2k a year with a potential for $20k out of pocket. I did that for many years, because I was healthier.
Currently, I receive far better treatment than the nationalized healthcare in the EU for instance (particularly the UK or Ireland, where I was considering moving). I also have the potential to make 5x what I would for my profession in the EU. That more than makes up for the differential.
I was pleading that you stop representing you know what poor people worry about on the basis of knowing at least 10 poor people. I don’t think you or I should speak on poor folks behalf. I never claimed to know what their worries are. Your opinions are your own, but I think it’s important to not take a chance and misrepresent people, especially when the stakes are high like with health care.
> I used to work at a medical billing service, they managed tens of millions in monthly billing (with millions of accounts annually).
I need to know the odds that the hospital that I happen to be around when I need treatment will reduce my bill by 80-90%. It’s not enough to know what your billing center was doing.
> I spend ~$9k a year for some really great health insurance (my family included in this), with potentially $5k out of pocket.
The cheapest quote I received from FL ACA marketplace is $12k a year for two people on a bronze plan and a potential $15k deductible. I view these plans as next to worthless aside from keeping me from immediate bankruptcy jeopardy.
I can live in Central America or India for less and be treated better by the locals in all likelihood. It doesn’t matter where I live in terms of my income potential.
How do we know that your personal anecdote can be extended to all hospitals in the US?
Ok, no more children. Honestly, haven't you though about why it is not economical to have children? Isn't it absurd that children drag their parents down even though they are going to be future tax payers?
>I've lived with people who their entire lives have never found or wanted to find a job, they've survived entirely off what the government provided. I know at least ten people (several in my family), who live like this.
It's better that way. Their children will do better.