Tag Archives: Tax

rePost::Marginal Revolution: The charity tax

The charity tax

The estimated social pressure cost of saying no to a solicitor is $3.5 for an in-state charity and $1.4 for an out-of-state charity. Our welfare calculations suggest that our door-to-door fund-raising campaigns on average lower utility of the potential donors.

via Marginal Revolution: The charity tax.

We hate not doing/giving, but we don’t have enough resources to be very generous. This produces guilt. This guilt lowers our self-image. I think this is the mechanism.

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rePost::The Rich *Are* Different | Angry Bear

This is an intersting read. What could this bracket be for the Philippines?? Can we even make a similar graph from data BIR has? NSO ?

Sometimes wish a day has 2400 hours.(not too often)

That said, there is an interesting qualitative change in the structure of income that starts to happen around this cutoff for the “rich” which actually suggests that taxpayers above that threshold are rich in most important ways. The most recent (2007) tax stats from the IRS now reflect the peak of the late bubble and show that the $100K-$200K AGI bucket is the last one that more-or-less resembles middle-income categories in their dependence on labor as the all-but exclusive source of income. (Think of pensions and proceeds of retirement accounts as representing deferred wages or salaries.) This graph shows the shares of AGI from some major income sources, and the average incomes for various brackets. (*)

Sources of Individual Income, 2007 SOI Tax Stats

(May be embiggened by clicking here.)

Starting with the $200-500K category, the share of earnings from labor begins a marked decline. By the time you hit mid-six figures, average earnings from income, dividends, and capital gains become high enough to provide middle-class or better incomes without (necessarily) working. Tax returns in the upper-six-figure bucket, on average, show more income from other sources collectively than from salaries, and at the top of the income scale even interest and dividend income exceeds wages and salaries. (**) I suggest that if you can provide yourself with a better-than-average living without working, a very rare luxury indeed, you are in fact rich.

(Revised and slightly expanded.)

via The Rich *Are* Different | Angry Bear.

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What’s Playing: The Taxman by The Beatles

HOLLYWOOD - APRIL 14:  Sir Paul McCartney pose...
Image by Getty Images via Daylife

Performed by The Beatles
Composed by George Harrison

One, two, three, four…
Hmmm!
One, two, (one, two, three, four!)

Let me tell you how it will be;
There’s one for you, nineteen for me.
‘Cause I’m the taxman,
Yeah, I’m the taxman.

Should five per cent appear too small,
Be thankful I don’t take it all.
‘Cause I’m the taxman,
Yeah, I’m the taxman.

(if you drive a car, car;) – I’ll tax the street;
(if you try to sit, sit;) – I’ll tax your seat;
(if you get too cold, cold;) – I’ll tax the heat;
(if you take a walk, walk;) – I’ll tax your feet.

Taxman!

‘Cause I’m the taxman,
Yeah, I’m the taxman.

Don’t ask me what I want it for, (ah-ah, mister Wilson)
If you don’t want to pay some more. (ah-ah, mister heath)
Cause I’m the taxman,
Yeah, I’m the taxman.

Now my advice for those who die, (taxman)
Declare the pennies on your eyes. (taxman)
Cause I’m the taxman,
Yeah, I’m the taxman.

And you’re working for no one but me.

Taxman!

Of course I’d like more money to spend, but I acknowledge the fact that I am far more lucky than alot of people from simply being born to the parents I was born to. It wasn’t because I had anything special, it simply is.  All taxation is a redistribution and I have no qualms about helping pay for roads or the mrt or healthcare for people who cannot afford it. It simply is in our best interest to help each other in this crazy and sometimes hopeless world we live in.

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Challenge To Wallstreet::Grasping Reality with Both Hands: Needed for AIG and the TARP: Silicon Valley Compensation Schemes

Punitive taxes on compensation that takes the form of long-term restricted equity stakes is a dangerous and destructive move. If the compensation bill that emerges from the conference committee does not allow TARP-receiving companies to offer such SVCSs, then Obama should veto it.

And if the traders of Wall Street then quit en masse? If they say that they are going to “Go Galt” if they don’t get their traders’ options to take the money upfront after assuring us shareholders that they have made us a lot of money, that their positions and strategies are sound, and that they have prudently managed the risks? Well, then that tells us something about what they really think the true value of their work product has been.

via Grasping Reality with Both Hands: Needed for AIG and the TARP: Silicon Valley Compensation Schemes.

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