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Author: Kilmarnoch Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76384  
Subject: Re: Roth IRA's (cont.) Date: 1/31/1998 10:25 PM
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XtraFool wrote:
<<anyway, looked a some quick numbers from the 1997 tax schedules.......... single taxable income of $124,650 will results in a 27% tax rate, $24,650 is the maximum for 15%. for married filing jointly, a income of $151,750 results in a 26% tax rate and $41,200 for 15%. so in both of these cases you would have to drop your income by over $100,000, or over 70% to fall into the 15% tax bracket. you would need a severe lifestyle change to be able to handle this loss of income. not the kind of retirement i would look forward to. a better plan would be to try and remain near the same tax rate. those marginal tax brackets are deceiving.>>

TMFPixy wrote:
[[I don't know what tables you're looking at. The IRS gives the following taxable incomes as the ranges for 1997 marginal rates:

Single Filers: 15% $0 to $24,650, 28% $24,650 to $59,750, 31% $59,750 to $124,650
Joint Filers: 15% $0 to $41,200, 28% $41,200 to $99,600, 31% $99,600 to $151,750]]

he's looking at the same ones you are...

joint filers making exactly $151,750:
41200 * .15 + (99600 - 41200) * .28 + (151750 - 99600) * .31
38698.50
38698.50 / 151750
.2550148270

joint filers making exactly $99,600:
41200 * .15 + (99600 - 41200) * .28
22532.00
22532.00 / 99600
.2262248995

single filers making exactly $124,650:
24650 * .15 + (59750 - 24650) * .28 + (124650 - 59750) * .31
33644.50
33644.50 / 124650
.2699117529

single filers making exactly $59,750:
24650 * .15 + (59750 - 24650) * .28
13525.50
13525.50 / 59750
.2263682008

Tax rates are going to go up not down.

When congress realises throwing away 20% of each year's tax revenues to pay interest on the debt is stupid and if Social Security hasn't been canceled in 20 years, people are going to be *dreaming* of the "good old days" when the normal bracket was only 28%. Think about what tax rates would pay off the national debt in a 30 year period *OR* fund SS in 2020... in the future I expect the "average tax bracket" to be in the low 40% range.

joy,
Kilmarnoch

ps. is there a message folder that talks about long term "stability" of the federal budget? *=)
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