Comments on: Another Bogus “Terror” Alert

By: Bryan

Bryan — Tue, 22 Jan 2008 01:16:52 +0000

You’re right, Alice, as Jams O’Donnell said at Steve Bates’s place, we are obviously agents of al Gorithm.

By: Alice

Alice — Mon, 21 Jan 2008 23:59:13 +0000

People! Your facts are playing havoc with the Tax Terror Alert! cease and desist, I tell you, before you introduce reality into the Hedgemony’s bubble.

By: Bryan

Bryan — Mon, 21 Jan 2008 04:21:11 +0000

I went back and checked, Michael, and if the earnings are interest or dividends, and not a sale of assets, everything would be same except she wouldn’t get the EIC, so she would actual go from nothing to $60, but she wouldn’t be paying the $2,400 or so in FICA taxes that would be deducted from wages.

By: Bryan

Bryan — Mon, 21 Jan 2008 03:19:12 +0000

Hipparchia, the $60 is the result of their projected increase of 67%. The child tax credit only covers $2,000 and a 67% increase on the $1,236 would take the tax $60 above the $2,000.

Actually, you might be right Michael, because the bottom income tax bracket is 10% and would revert to 15%, or a 50% increase, while the current capital gains bracket is 15% and it would rise to 25% a 67% increase. I assumed wages and earnings, but it could be capital gains. In that case there wouldn’t be any FICA taxes, so the overall rate would be lower, but there wouldn’t be an Earned Income Credit either.

I don’t deal with capital gains, I left that to an tax pro the few times it has happened.

By: Michael

Michael — Mon, 21 Jan 2008 02:30:40 +0000

Guys, guys, guys–they said “earnings,” not “income.” So of course mom is making her living clipping bond coupons and has to pay that nasty capital gains tax (which is of course going to be one of the ones the Hedgemony wants to cut to save our faltering economy).

By: hipparchia

hipparchia — Mon, 21 Jan 2008 01:52:37 +0000

i did the same thing, and came up with mom owes zero taxes [i’m still not sure where you got the $60, but that doesn’t detract from the overall point], and then i tried to figure out probable child care, health care, education deductions.

i like doing tax forms, and even considered trying another example, but now my head hurts, mostly from rage at having to even address these lies.