Over the last few days I have had an extraordinarily difficult time locating a liberal economist who has high income. Paul Krugman it seems falls just under the $250K marker where he will have to pay the new 0.9% Mecaure surcharge. Truth is Mr. Krugman knows little in regards to how we folks in the upper tiers of income generate and spend income. In past times we did not worry so much about ‘expressing’ income in taxable form. Today, that is no longer the case.
In fact, I’ve trimmed and moved income sources around so that entering 2013 I will pay roughly 10% of the taxes I have in previous years. My income is so thin in comparison, that 0.9% of that income will produce significantly less economic activity if my fellow earners follow the same ‘plan,’ which of course we know historically most will follow. Though government will see lower revenues, we have at least accomplished that liberal goal of “justus.”
Next up is the increase in taxes across the board when the Bush era tax cuts expire on December 31, 2012. I am sure these will expire. The Senate will want to exclude my folks at the top, ensuring the House will not pass one single line of legislation agreeing to an extension. Of course, I could be wrong if ‘we the people’ tell Democrats to go straight to hell, with no detour, on November 6, 2012. We may just do that in fact. (Since Democrats do not believe in a God — other than to invoke his Name for their advantage — I assume they will get along quite well in that hot place.) That brings my rate to 39.6%.
Then there is that 3.8% tax on investment income with the majority of that income now also being taxed as regular income at 39.6% for those in the upper bracket. That would mean that at that point where the top rate hits my income I could see a rate of 44.3%. Had I continued residence in Georgia, my effective rate would be 48.8% with Georgia’s new lower state tax rate.
I have however, performed a “Warren Buffet” — our great Democratic tax fan — where my necessary income is shielded from everything except that 0.9% tax as well as the normal S.S. tax up to $108,000 or wherever the cap is along there. So, with my income I will do nothing other than maintain lifestyle and bring up the 1911 plant so I’m not bored. If things get too bad, I’ll just return home to die Schweiz and let my dead relatives here in the ground rest calmly at my departure, for after all, they are mostly those I give a damn about these days, as everyone else can simply screw themselves. (I’ll buy some lubricant for donation.)