Forum Thread

Tax Tables Should be Adjusted to Help the Middle Class

Reply to ThreadDisplaying 4 Posts
  • Are you sure you want to delete this post?
        

    Someone living in a major metropolis who earns $30,000 a year shouldn't have to pay the same tax rate as someone who earns the same amount of money while living in rural Nebraska. And someone who earns $400,000 a year shouldn't have to pay the same tax rate as their billionaire counterpart.

    I sincerely hope I'm not coming across as anti-rich, because I most assuredly am not. People who work hard and earn their riches have every right to enjoy their prosperity. However, what I'm advocating for is a rewrite of the tax tables to better reflect modern day America.

    One dollar separates a ten percent increase in taxes for someone who earns $37,450 a year and someone who earns $37,451 a year. That may seem like a lot of money to people living in a rural part of the country, but that is a whole lot of money for someone trying to make a living in a city. The same goes for the higher tax brackets.

    I'd like to see the federal tax table adjusted to reflect the cost of living in a particular area. City living costs a lot more than rural living and our tax tables should reflect that.

  • Are you sure you want to delete this post?
        
    JaredS Wrote:

    One dollar separates a ten percent increase in taxes for someone who earns $37,450 a year and someone who earns $37,451 a year.

    Fair to point out though that it's a 10% increase only on income ABOVE that $37,450 earning level. Anything under $37,451 is still taxed at the same rate, for all.

  • Are you sure you want to delete this post?
        
    JaredS Wrote:

    I'd like to see the federal tax table adjusted to reflect the cost of living in a particular area. City living costs a lot more than rural living and our tax tables should reflect that.

    I would like to see that too. Although I think it would be a much more complicated proposal than it initially might sound. Would be hard(er) to handle an exact equation for calculating commuter's COL, or people that travel for work all the time. Or workers that travel freely and often, that work remotely.

    Also would change where people opt to live, in any given city or surburb, if location = tax bracket. I don't know. I wonder if it could be done, and actually make sense for all. Any ideas on a universal answer, or do you think a certain equation would have to be configured, thinking of all the possible variables, and having every taxpayer input their info in specifically?

  • Are you sure you want to delete this post?
        

    I would like to see that too. Although I think it would be a much more complicated proposal than it initially might sound. Would be hard(er) to handle an exact equation for calculating commuter's COL, or people that travel for work all the time. Or workers that travel freely and often, that work remotely.

    Also would change where people opt to live, in any given city or surburb, if location = tax bracket. I don't know. I wonder if it could be done, and actually make sense for all. Any ideas on a universal answer, or do you think a certain equation would have to be configured, thinking of all the possible variables, and having every taxpayer input their info in specifically?

    I think that it could be done, but like you said, it would probably be very complicated. There is such a difference in income vs cost of living, depending on region. Also we should take into consideration how much they are already paying their state. I remember when I used to do corporate recruiting. I would have a job that paid $12 an hour. Candidates would fight each other over it in Alabama, but just laugh at us and ask if we were joking in up-state New York.
Categories: Tax Brackets