Common Income Tax Misconceptions
Have you ever heard a co-worker or someone you know say something about not wanting to change jobs or get a promotion because it will move them up in the tax bracket or that all their money will just go to taxes? They are inferring that they will actually lose money because they will be taxed more than they will gain from the raise. I have heard this many times. I think there is a common misconception out there that people think all of their income is taxed at the same rate based on how much they make. However, we learned this is not true from the reading and in class. The marginal tax rate concept shows that only the additional dollars you make in the next tax bracket are taxed at a higher rate, not your entire salary. In essence, it is still a good idea to take a raise or promotion and make more money because you will still get to keep some of that money. I found an article in the NY Times that illustrates this point nicely. In addition, there is a great article on the basics of income taxes and the main points you need to know if you do your own taxes.
Also, for those of you who are wondering about President Obama's new tax proposals which would increase taxes on wealthy Americans, I found another article that explains this pretty well. Gotta love the NY Times! A few interesting points: The new highest tax bracket would be taxed at 39.6% instead of the current 35%. There will be also be some interesting affects for wealthy people who make a living off hedge funds, as the current capital gains tax is 15% but the plan proposes to increase it to 39.6% which would be the same rate as the income tax. For college students and low income people, there will be some new tax breaks. The article also goes through a fairly extensive AMT explanation for wealthy tax payers, so if anyone is confused about that, check it out.
(Originally posted by Ashley at the Course Weblog of PA5113)
Comments
This is going to be terrible and controversial just lke extreme couponing
Posted by: Suzette Chinn | August 10, 2012 4:02 AM
Any one here who tried this method? Does it do the job? Greets
Posted by: Vinita Wolfley | August 10, 2012 4:52 AM
I have been following your website for 4 days now and that i should inform you I get something new from your submit. and now how I'm able to get news update from your blog?
Posted by: Josue Papania | August 21, 2012 9:41 PM
We wish to thank you again for the lovely ideas you gave Jeremy when preparing her post-graduate research and also, most importantly, regarding providing many of the ideas in a blog post. Provided we had known of your web-site a year ago, we will have been saved the needless measures we were selecting. Thanks to you.
Posted by: Lose Weight | August 27, 2012 4:56 AM
I blog a lot with LOTS of text so I think wordpress would be an exceptionally good choice for me. Correct now I am using weebly on fatcow and it sucks because fatcow (or weebly) gauges you when you you should not use weebly on the weebly web site itself. You pay 3.99 a month for pro features on weebly's website. You pay 9.95 for just a month for that premium' features on fatcow then another 2.95 a month for shopping cart functionality which is free on the weebly internet site to begin with. Plus, the fatcow weebly builder lacks a lot of features weebly's actual internet site has. You pay $13/mo on fatcow's weebly and get considerably less features than paying $4/mo on weebly's actual web-site.
Posted by: import vob to imovie | August 29, 2012 4:03 PM
ruining wut exactly?
Posted by: mts final cut pro | August 29, 2012 4:45 PM
/CleanStyle/scripts/cache/' directory should have write permissions (755 or 777)
For more help I ned access to WP admin. Use contact form on About web page.
Posted by: Read This | August 30, 2012 2:34 PM
Wow, awesome blog layout! How lengthy have you been blogging for? you made running a blog look easy. The total glance of your web site is fantastic, let alone the content!
Posted by: Bruce | August 31, 2012 8:23 AM
Hello There. I found your weblog the use of msn. This is a really smartly written article. I will make sure to bookmark it and return to learn extra of your helpful information. Thank you for the post. I will definitely comeback.
Posted by: Breton | August 31, 2012 11:44 AM
Incredible points. Outstanding arguments. Keep up the amazing spirit.
Posted by: Ellen Gazaway | August 31, 2012 10:48 PM
I hope to kick the smoking, which causes death
Posted by: Cristal Heinitz | September 3, 2012 10:24 AM
Here is the case. i got some backlinks pointing to my own web page and the webpages got indexed by google. The index number is increasing everyday. I wonder if these backlinks play some role in it. If so, how could i build direct connection in between the backlinks and the indexed pages? It's urgent. Thanks..
Posted by: Jule Talman | September 15, 2012 12:49 PM
I clicked on this internet site by seeking Google. I've discovered it quite interesting. Thanks for writing about this. I will must come back here yet again!
Posted by: Bradley Konopacky | September 19, 2012 3:03 AM
That may be some really great advice because persons are leaning a lot of new money makin ideas, I well I sure am from the submit. Wonderful get the job done and keep it up
Posted by: Devin Ronne | September 22, 2012 1:27 AM
Join VIP member to get more high quality link lists: http://getlinklist.com/payments.php
Posted by: plastic strapping | September 24, 2012 3:01 AM
http://impoverishederi.wreckthewake.com/2958/level-headed-personal-injury-lawyers-philadelphia-products-ideas-for-consideration/
Posted by: Lawyers in Mt Holly NJ | September 25, 2012 12:44 PM
Hi to each and every one. My Organization Is from Greece and i create a new-found net site. Kindly Visit my website and let me know your ideas and opinions. Yow Will Discover a lof of good ideas and knowledge just about my job. It Really Is a totally free 100% and without any registrator. With Thanks To the world that could go my new-found web blog. This Will Help my work. | internet |
Posted by: more information | September 26, 2012 3:17 AM
I have been reading absent a lot of of your posts and i can claim quick gear. I will make positively to bookmark your blog.
Posted by: nero | September 28, 2012 8:04 PM
mitzireddy claimed on 19 September 2012
Posted by: Annette Bazner | October 3, 2012 1:58 AM
I've in recent times ongoing a blog, and the information you propose by this website has helped me a lot. Be grateful you for all of your time & work.
Posted by: program download | October 3, 2012 9:14 PM
Thank you, I've been hunting for facts about this subject matter for ages and yours is the best I've located so far.
Posted by: website | October 6, 2012 10:43 AM
It's about time we declare the American working class "too big to fail". Why are a few thousand bank executives and shareholde-rs "too big to fail", when 300 million American citizens are considered expendable-. guild wars guide
Posted by: Liek1942 | October 11, 2012 11:11 AM
Thanks, I have recently been searching for details about this topic for ages and yours is the best I have discovered so far.
Posted by: antenna for digital tv | October 11, 2012 2:08 PM
This is not
Posted by: gry | October 16, 2012 2:39 AM
What's Attractive position i'm new to this, I stumbled upon this I have naked It utterly beneficial and it has helped me absent heaps. I am hoping to create a contribution & abet supplementary users comparable its helped me. Abundant job.
Posted by: gry | October 20, 2012 4:32 AM
Nice one! I will share some of your ideas and info to my colleagues... hope it's fine! =)
Posted by: girlfriend experiance | October 29, 2012 2:22 PM
Great - I be supposed to indeed articulate I'm impressed with your website. I had no trouble navigating through every one of tabs as satisfactorily as associated in a row. The site wrecked in the lead living being rightly straightforward to access. Polite job..
Posted by: Go Here | October 29, 2012 7:48 PM
These stories get me excited about what is possible. thanks =)
Posted by: lionel trains | November 30, 2012 1:41 PM
Wait around your buying and selling hundreds of cars WITH OUT a Dealers Lisence??????????????????
Posted by: Adrian Hilman | January 5, 2013 5:46 AM
Bau von Kunststoffzaun
Posted by: Rolle die Umzäunung aus PVC | January 6, 2013 10:07 PM
Omg christian yess harder
Posted by: Madelaine Harward | January 19, 2013 1:58 PM
Gerd, also known as gastro-esophageal reflux disease, or GERD, comes about because of the coexistence of 2 medical conditions. The 1st acid reflux disease contributing condition is a retrograde flow of stomach contents into the esophagus. That said, the reflux itself does not automatically lead to gastro-esophageal reflux disease warning signs or histologic changes, and can appear among normal men or women as well. In such cases, the process is referred to as "physiologic gastroesophageal reflux".
Posted by: Video | January 25, 2013 8:10 AM
A Helpful Introduction To Key Details Of california pickup automobile accident law firm
Posted by: Your Domain Name | February 7, 2013 12:20 AM
It’s hard to come by educated people in this particular subject, however, you sound like you know what you’re talking about! Thanks
Posted by: Travelgenio Opiniones | February 23, 2013 9:28 AM
Thanks for your posting
Posted by: Carter King | February 24, 2013 5:53 PM
David, you never receive copies of your previous letters. As the letters go forward that amount can be in the hundreds. But if there's a particular letter send us an email and maybe we can figure something out.
Posted by: Ashlea Gros | March 2, 2013 4:17 PM
I really appreciate this send. I've been looking every one ended used for this! Thank goodness I establish it on Bing. You have complete my day! Thank you again
Posted by: Fransisca | March 5, 2013 8:44 PM
Random Google results can every so often lead to admirable blogs such as this. You are performing a clear trade, and we share a lot of thoughts.
Posted by: Dorethea | March 8, 2013 5:53 AM