An aggrieved billionaire this week lamented that workers had grown lazy and "arrogant" during the coronavirus pandemic and that many of them needed to be made unemployed for the situation to improve.The Australian Financial Review reports that Tim Gurner, the founder and CEO of the Gurner Group, exp...
let me introduce you to the progressive tax rates.
Imagine I earn 100k$/year. Let’s say the tax rate is 30% at this point (I’m pulling these numbers from a hat), so I pay 30k, I’m left with 70k.
Next year I’m promoted to vice-CEO (I’m pulling these positions from a hat) and earn 500k$/year. Luckily my state says that at 250k$ the tax rate jumps to 50%. This means I pay 30% on all earnings up to 250k (30%250k=75k) and 50% on all above that (50%(500k-250k) = 125k), effectively I’m left with 300k in my pocket, more than 4x what I earned before despite the tax hike.
The next further year I became the final boss of capitalism - the CEO. Earnins jump again to 2mil$/year. Again luckily, my state says that all earnings above 1mil are taxed 75%. So again I pay the 30% on all earnings up to 250k (30%250k=75k), 50% on earnings between 250k and 1mil (50%(1m-250k) = 375k) and 75% on the earnings between 1m and 2m (75%*1m=750k). I’m left with 800k in my pocket, almost triple of what I earned last year despite the tax hike.
anyone richer than lower middle class will fight tooth and nail against progressive tax rates, but the fact is that at these levels of salary even if you’re left with like 25% it’s still a hideous pile of money.
I know what this is, but he didn’t say that. But they said pay 75% on all assets worth 10M. So if you own a house or a yacht, car, etc worth 10M. They suggest you pay 7.5M in tax on that every year.
These are the people trying to tell you how to run an economy lol