The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: 102% tax rate||Date: 2/5/2012 8:14 PM|
|Author: JAFO31||Number: 114966 of 121150|
<<<How do your propose to calculate payments due those whom you would require to pay more (in) taxes?>>>
"Simple ... keep the total SS benefit caps where they are currently but adjusted for inflation."
So you would not even recognize the change in AIME?
"Chances are good that the wealthy don't even need SS benefits in addition to their pensions, golden parachute contracts, not to mention their large asset base at retirement."
Please note that per the Tax Foundation
Dollar Cut-Off, 1980-2009 (Minimum AGI for tax return to fall into various percentiles; Thresholds not adjusted for inflation)
Year Top 1% Top5% Top 10%
2006 $388,806 $153,542 $108,904
2007 $410,096 $160,041 $113,018
2008 $380,354 $159,619 $113,799
2009 $343,927 $154,643 $112,124
One could be over teh SS limit without even being in the top 10% for AGI.
"You are an attorney correct?"
"If you have been successful, financially astute ... can you honestly say that you would not be able to retire at a normal retirement age (say 65) with the current maximum SS retirement benefits (including COLA) to which you may be entitled?
Well, (1) I have not run thsoe numbers and (2) I do not have 35 years of attorney income, so the current maximum to which I authorized is not the same as it will be when I do have 35 years in.
"Some may see this as a transfer of wealth strategy."
SS has always been a wealth transfer mechanism. You are simply making it more obvious and more tilted than it already is.
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