[Brown67]

Originally Posted by BanditsCousin

Partially true. When your net income is reaching a break point where tax brackets end/meet, sometimes that chrome visor you can buy that puts you into a LOWER tax bracket is very beneficial. Pretty much what I'm saying is, there are points where you can buy something for you/your truck or pay it to the government.

An example-

Lets say you net 80, and pay 30%. After 24 in tax, you are left with 56.

Lets say you bought those naked lady mudflaps and your net is now 79, but taxed at 27% (assuming <80 grand )and you are left with just over 57,500. You got extra chorme/gadgets, and STILL have more money.

Now, these are rounded numbers, and only examples of tax brackets, but it's pretty easy to see what I'm getting at.

And I believe the term is "exponential" as opposed to linear since the tax rate increases with taxable earnings.

Doesn't work that way. Not sure where the tax brackets break, but let's say 80k. The first $79,999 is taxed at say 27%. At 80K it jumps to 30%. The first $79,999 is still taxed at 27%. Every dollar over that is taxed 30%. Not the full amout.

[Rev.Vassago]

Originally Posted by Brown67

Doesn't work that way. Not sure where the tax brackets break, but let's say 80k. The first $79,999 is taxed at say 27%. At 80K it jumps to 30%. The first $79,999 is still taxed at 27%. Every dollar over that is taxed 30%. Not the full amout.

You would think someone who claims to earn over $300,000 a year would understand how they are taxed on it.:rofl:

[Creek Jackson]

Originally Posted by Rev.Vassago

You would think someone who claims to earn over $300,000 a year would understand how they are taxed on it.:rofl:

The Rev never forgets!! :rofl:

[allan5oh]

The Bandit brings up a good point, just an incorrect one.

I think his logic is where a lot of business owners think that a tax deduction is the magic ticket.

[BanditsCousin]

What I should have specified, is that the more you're making, the more you're taxed on, the more you're taxed. Almost like working for free, even though you're not. The more dollars you earn v.s. take home starts declining.

But, hey, I never ran an entire month averaging 78cpm like some people, so what would I know?

[Rev.Vassago]

Originally Posted by BanditsCousin

But, hey, I never ran an entire month averaging 78cpm like some people, so what would I know?

And we all know who's fault that is too.

(plus, since I was never paid for the work I did, technically I ran an entire month for $0.00 per mile.)

[Les2]

Ever think about paying the truck off and taking it easy? Thats what I did! The only problem, and anyone who has paid off almost everything they have is, you have no credit! No credit is worse than bad credit. Yeah I know it sounds stupid but its true to a point.

[solo379]

Originally Posted by Les2

but its true to a point.

Not at all. If you have no current debts, doesn't mean you don't have a credit history. I'm debt free, scoring over 800....

[Heavy Duty]

Originally Posted by BanditsCousin

Partially true. When your net income is reaching a break point where tax brackets end/meet, sometimes that chrome visor you can buy that puts you into a LOWER tax bracket is very beneficial. Pretty much what I'm saying is, there are points where you can buy something for you/your truck or pay it to the government.

An example-

Lets say you net 80, and pay 30%. After 24 in tax, you are left with 56.

Lets say you bought those naked lady mudflaps and your net is now 79, but taxed at 27% (assuming <80 grand )and you are left with just over 57,500. You got extra chorme/gadgets, and STILL have more money.

Now, these are rounded numbers, and only examples of tax brackets, but it's pretty easy to see what I'm getting at.

And I believe the term is "exponential" as opposed to linear since the tax rate increases with taxable earnings.

Why not put you money in a IRA, lower your taxes and keep your money, and you don't have to polish it.

[heavyhaulerss]

I've never understood this "but you need some sort of writeoffs". I'd rather have zero writeoffs and keep all my money, minus a percentage that goes to income tax of course.
__________________
No Payne, No Gain!


Ditto.. I have heard this over the years. As told to me many times, that I need to get rid of my paid for truck, to have a payment , to have a write off. first I was told I was wrong for buying an inexpensive truck & one that does not hold it's value. I didn't care about it's resale value. I was planning on driving every penny I spent on it, out of it. I never wanted to put money into something that depreciates. so every year rather than put money into a newer truck or new chrome, I would buy property. something that appreciates & also has a write off.

If you do the tax write off every couple-few years, you may never get out of that cycle of owing. it's a freedom thing with me. PEACE OF MIND! some folks accept as fact that they will always have bills & payments & a truck payment is one of them. not me. financial freedom is eliminating anything that has a payoff date. utility bills, other taxes we have to pay as long as were alive. but weather it be mortgage, or anything else, if it has a "payoff" then I want to PAY IT OFF!.. a.s.a.p.