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What is Your Bonus Tax Rate?

Calculating your bonus tax rate may seems like a prudent move with bonus season right around the corner. I see this issue confuse people time and time again, with most people assuming that bonuses are taxed at a higher rate than your regular salary.

Let’s put the myth to rest immediately:

Your bonus isn’t taxed at a higher rate.

That’s right. Surprised?

Bonuses are taxed at the same ordinary income tax rate.

Part of the reason this myth persists is because bonuses and other types of supplemental income are subject to different rates of withholding.

Of course, the amount withheld from your paycheck has no relationship to the actual amount of tax paid each year, but it can be confusing to some.

The internet isn’t very helpful either, with a lot of websites mistakenly declaring the supplemental tax rate to be a 22% flat tax. Again – there is no such thing. I would link to the sites I’m talking about, but I don’t want to give them any more exposure then they already have.

How are bonuses taxed?

If you’re wondering how bonuses are taxed, I’m going to explain it in this section.

But first, you need to understand that the IRS considers supplemental wages to be any income paid to an employee that aren’t part of your regular wages.

That means most bonuses are supplemental wages.

When your employer makes a supplemental wage payment to you (i.e. bonus), they have two options for how to treat your bonus.

Option 1:

If the supplemental wage is combined with regular wages and there’s no indication as to which part of the payment is regular wages and which part is supplemental, then the employer withholds as if the total was a single payment for a regular pay period.

That means if you are normally paid $5,000 a month and get a bonus in one month for $5,000, the IRS will treat you as if you’re making $120,000 a year (not ideal for you!).

Most employers don’t like this option either, so it’s not very common.

Option 2:

The vast majority of employers make it easy on themselves and separate the supplemental wages from the regular wages.

This is why you’ll often get one paycheck with your salary and a separate paycheck with your bonus.

If this is how your employer handles bonus payments, they’ve separated your “regular” wages from your “supplemental” wages.

The result?

Employers are required to withhold from your paycheck a flat 22% of the bonus payment.

If you look at any recent bonus payment, it’s highly likely you’ll see that your the federal withholding on your bonus payment is exactly 22%.

Just to reiterate, this has nothing to do with the actual bonus tax rate. This is only the amount that your employer is withholding and sending to the government.

How to calculate your bonus tax rate

Calculating your actual bonus tax rate isn’t that hard.

Your bonus is taxed at the same rate as all of your other income.

If you’re in the 33% tax bracket and you receive a bonus of $100,000, you will pay $33,000 in federal taxes.

The state and local taxes work the same way. Multiply the bonus amount by your marginal tax rate to understand how much you will pay.

Since your employer may withhold more or less than the actual amount you will pay, this will get sorted out when you pay your taxes.

If your employer withholds more than your marginal tax rate, you may get a refund when you file your taxes.

If your employer withholds less than your marginal tax rate, you may have to pay when you file your taxes.

A bonus tax rate would be impossible to track

If you think about it, a bonus tax rate doesn’t make any sense either. Why would the government want to tax bonuses at 22%, particularly for high income earners that are in the 39.6% tax bracket?

If you’re paying tax at 39.6%, 22% on your bonus doesn’t sound so bad. In fact, it would encourage all high income earners to insist that their employers classify as much income as “supplemental” as possible.

The same would be true for income earners below the 22% marginal federal tax rate. Everyone would be crying foul and demand that bonuses get included in regular wages (to be fair, people do complain but only because they misunderstand the difference between the withholding and the actual tax due).

Finally, there’s no place on Form 1040 to include bonus income. Line 7 requires all wages, salaries, tips, etc. as reported on your W-2.

Since there’s no place to put bonus income on your 1040, there’s no way for the IRS to tax your bonus at a higher rate!

I hope that puts the issue to rest. Your bonus is taxed as ordinary income, just like all of your other wages.

Westlake Legal Group joshua_holt_authorphoto What is Your Bonus Tax Rate? Taxes

Joshua Holt A practicing private equity M&A lawyer and the creator of Biglaw Investor, Josh couldn’t find a place where lawyers were talking about money, so he created it himself. He knows that the Bogleheads forum is a great resource for tax questions and is always looking for honest financial advisors that provide financial advice for a fair price.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

What is Your Bonus Tax Rate?

Calculating your bonus tax rate may seems like a prudent move with bonus season right around the corner. I see this issue confuse people time and time again, with most people assuming that bonuses are taxed at a higher rate than your regular salary.

Let’s put the myth to rest immediately:

Your bonus isn’t taxed at a higher rate.

That’s right. Surprised?

Bonuses are taxed at the same ordinary income tax rate.

Part of the reason this myth persists is because bonuses and other types of supplemental income are subject to different rates of withholding.

Of course, the amount withheld from your paycheck has no relationship to the actual amount of tax paid each year, but it can be confusing to some.

The internet isn’t very helpful either, with a lot of websites mistakenly declaring the supplemental tax rate to be a 22% flat tax. Again – there is no such thing. I would link to the sites I’m talking about, but I don’t want to give them any more exposure then they already have.

How are bonuses taxed?

If you’re wondering how bonuses are taxed, I’m going to explain it in this section.

But first, you need to understand that the IRS considers supplemental wages to be any income paid to an employee that aren’t part of your regular wages.

That means most bonuses are supplemental wages.

When your employer makes a supplemental wage payment to you (i.e. bonus), they have two options for how to treat your bonus.

Option 1:

If the supplemental wage is combined with regular wages and there’s no indication as to which part of the payment is regular wages and which part is supplemental, then the employer withholds as if the total was a single payment for a regular pay period.

That means if you are normally paid $5,000 a month and get a bonus in one month for $5,000, the IRS will treat you as if you’re making $120,000 a year (not ideal for you!).

Most employers don’t like this option either, so it’s not very common.

Option 2:

The vast majority of employers make it easy on themselves and separate the supplemental wages from the regular wages.

This is why you’ll often get one paycheck with your salary and a separate paycheck with your bonus.

If this is how your employer handles bonus payments, they’ve separated your “regular” wages from your “supplemental” wages.

The result?

Employers are required to withhold from your paycheck a flat 22% of the bonus payment.

If you look at any recent bonus payment, it’s highly likely you’ll see that your the federal withholding on your bonus payment is exactly 22%.

Just to reiterate, this has nothing to do with the actual bonus tax rate. This is only the amount that your employer is withholding and sending to the government.

How to calculate your bonus tax rate

Calculating your actual bonus tax rate isn’t that hard.

Your bonus is taxed at the same rate as all of your other income.

If you’re in the 33% tax bracket and you receive a bonus of $100,000, you will pay $33,000 in federal taxes.

The state and local taxes work the same way. Multiply the bonus amount by your marginal tax rate to understand how much you will pay.

Since your employer may withhold more or less than the actual amount you will pay, this will get sorted out when you pay your taxes.

If your employer withholds more than your marginal tax rate, you may get a refund when you file your taxes.

If your employer withholds less than your marginal tax rate, you may have to pay when you file your taxes.

A bonus tax rate would be impossible to track

If you think about it, a bonus tax rate doesn’t make any sense either. Why would the government want to tax bonuses at 22%, particularly for high income earners that are in the 39.6% tax bracket?

If you’re paying tax at 39.6%, 22% on your bonus doesn’t sound so bad. In fact, it would encourage all high income earners to insist that their employers classify as much income as “supplemental” as possible.

The same would be true for income earners below the 22% marginal federal tax rate. Everyone would be crying foul and demand that bonuses get included in regular wages (to be fair, people do complain but only because they misunderstand the difference between the withholding and the actual tax due).

Finally, there’s no place on Form 1040 to include bonus income. Line 7 requires all wages, salaries, tips, etc. as reported on your W-2.

Since there’s no place to put bonus income on your 1040, there’s no way for the IRS to tax your bonus at a higher rate!

I hope that puts the issue to rest. Your bonus is taxed as ordinary income, just like all of your other wages.

Westlake Legal Group joshua_holt_authorphoto What is Your Bonus Tax Rate? Taxes

Joshua Holt A practicing private equity M&A lawyer and the creator of Biglaw Investor, Josh couldn’t find a place where lawyers were talking about money, so he created it himself. He knows that the Bogleheads forum is a great resource for tax questions and is always looking for honest financial advisors that provide financial advice for a fair price.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Elizabeth Warren is going to have a hard time paying for Medicare for All

Westlake Legal Group Warren-Velshi Elizabeth Warren is going to have a hard time paying for Medicare for All The Blog Taxes medicare for all Elizabeth Warren

Earlier this month the Urban Institute released a new analysis of various versions of health care reform, up to and including the Medicare for All plan being touted by Bernie Sanders and Elizabeth Warren. What Urban concluded was that the cost of the plan would be substantial [Emphasis added]:

The modeled “enhanced” single-payer system would cover everyone, including undocumented immigrants. The reform would include benefits more comprehensive than Medicare’s—including adult dental, vision, hearing, and long-term services and supports—with no premiums or cost sharing. All current forms of insurance for acute care would be eliminated, including private insurance, Medicaid, and Medicare, and everyone residing in the US would be covered by a new public insurance program. Providers would be paid rates closer to Medicare’s. Health spending by employers would be eliminated, and household and state health spending would decline considerably while federal spending would increase significantly…

This reform option covers the entire US population. National spending on health care would grow by about $720 billion in 2020. Federal government spending would increase by $2.8 trillion in 2020, or $34.0 trillion over 10 years.

As you’ve probably noticed by now, Elizabeth Warren has repeatedly refused to admit that taxes would need to go up sharply to cover these costs. All Warren will say is that “for middle-class families, for hard-working people costs are going to go down.” In other words, yes, taxes might go up but that rise will be more than offset by not having to pay monthly premiums, co-pays, etc. But is that true?

Yesterday, Jennifer Rubin at the Washington Post took a break from her incessant Trump-bashing to point out that there is some reason to think costs will not decline for most people under Medicare for All. Specifically, she points to an analysis by Kenneth E. Thorpe of Emory. Thorpe was an adviser on the single-payer plan in Vermont. Here’s what he concluded about the tradeoffs:

Allies of the Medicare for All plan correctly points out there would be savings from the approach for families from out of pocket health care costs. Certainly not paying premiums or a deductible or a copayment would save many families money. We estimate that would average over $2 trillion per year over the next ten years. However, taxes would have to be increased by an average of $3.2 trillion over the same period. A Medicare for All plan would create enormous winners and losers that have not been discussed in the debate. My recent analysis compares the dollars savings households with private health insurance would receive through the elimination of premiums and cost sharing to the new federal taxes they would pay to fund the program. The analysis shows that 71 percent of households with private insurance today would pay more in new taxes than they would save through the elimination of premiums and cost sharing.

For example, two-thirds of workers in small firms under 50 would pay more in taxes under a Medicare for All plan than they would save in the elimination of premiums and cost sharing. The tax increases would also hit the middle class. Two-thirds of families of 4 earning $50,000 to $75,000 would pay more in taxes than they would save through a Medicare for All plan. Overall over 10 million households earning between 200 and 300 percent of poverty would pay more in taxes than they would save through the elimination of premiums and cost sharing. Overall nearly 70 million households would pay more in higher taxes than they would save under Medicare for All.

If Warren is committed to not raising “costs” on families to pay for Medicare for All then she’s going to have to either limit the taxes on those 71 percent of households who would wind up paying more or, alternatively, she could limit the cost of the plan by reducing the benefits it offers. If she limits the taxes on the middle class, where is the money going to come from? Her wealth tax proposal (assuming it’s constitutional) is already spent on her other plans like free college tuition. Finally, there’s one more bit of bad news in Thorpe’s analysis. Medicare for All will result in a lot of lost jobs:

Medicare for All advocates point out that paying providers at Medicare rates and administrative savings would reduce what we spend on health care. That ignores the fundamental equation that expenditures equal income. For example, paying the over 5,000 community hospitals at Medicare rates would reduce their revenue by 16 percent and eliminate 1.5 million jobs. Hospitals are often the largest employer in many small and mid-size communities that reductions of this magnitude would have enormous economic and social implications for them. The elimination of private insurance would also result in lost jobs through the elimination of health insurance, by some estimates nearly 1 million in the health insurance industry.

Maybe Warren has a plan for that too but so far she hasn’t shared it.

The post Elizabeth Warren is going to have a hard time paying for Medicare for All appeared first on Hot Air.

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Cartoon: California’s Ballooning Gas Prices

For more information on this laughable situation, please read this article here on RedState.com – “Stunning: CA Gov. Gavin Newsom Orders Investigation To Find Out Why State’s Gasoline Prices Are So High” – I want to ask, but know it is basically a rhetorical question at this point, but WHEN WILL THEY EVER LEARN?

Westlake Legal Group 2019-10-24-BallooningCAGasPrices2 Cartoon: California’s Ballooning Gas Prices Taxes investigation high taxes Gavin Newsom gas prices Front Page Stories Featured Story Editorial Cartoons California Allow Media Exception

California’s Ballooning Gas Prices

More cartoons at:  TobyToons.com

The post Cartoon: California’s Ballooning Gas Prices appeared first on RedState.

Westlake Legal Group 2019-10-24-BallooningGasPrices_fi-300x180 Cartoon: California’s Ballooning Gas Prices Taxes investigation high taxes Gavin Newsom gas prices Front Page Stories Featured Story Editorial Cartoons California Allow Media Exception   Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Stunning: CA Gov. Gavin Newsom Orders Investigation to Find Out Why State’s Gasoline Prices are So High

Westlake Legal Group 02f7c7e0-4bf6-401e-9693-e92c39291877-620x317 Stunning: CA Gov. Gavin Newsom Orders Investigation to Find Out Why State’s Gasoline Prices are So High Taxes Liberal Elitism Gavin Newsom Front Page Stories Featured Story Energy democrats Catherine Reheis-Boyd California CA high tax rate CA gasoline taxes Allow Media Exception Abuse of Power

Democratic Lt. Gov. Gavin Newsom speaks at his gubernatorial campaign’s primary night watch party in San Francisco, Tuesday, June 5, 2018. (AP Photo/Jeff Chiu)

 

ABC News reports that CA Gov. Gavin Newsom is so concerned over gas prices in the state, which have now topped $4 per gallon, that he’s ordered the attorney general to open an investigation. Yes, really.

According to ABC:

The California Energy Commission said it “does not have any evidence that gasoline retailers fixed prices or engaged in false advertising.” But it said the industry did not provide any proof that its gasoline was better than what the state requires all retailers to sell.

Catherine Reheis-Boyd, president of the Western States Petroleum Association, said the industry trade group is reviewing the report. But she said it was important to note California’s fuel taxes and standards, which are more strict than other states, account for the first $1.07 per gallon at the pump.

Is it me or has the entire American left taken a dive into the twilight zone over the last three years? How is this a mystery Governor?

Many taxpayers have suggested that Newsom pick up a mirror. CA currently has the highest state income tax in the U.S., that is for those in the state who actually pay taxes. With their ever increasing additions to state-provided social services, they have to find the money somewhere. Given the recent exodus of high earners leaving the state to shield their income, CA would go bankrupt without the revenue they receive from gasoline sales. Blaming it on the oil companies is the height of hypocrisy and foolishness.

Voters were quick to point out the error of Newsom’s ways (Via Twitchy):

So California has basically told anyone in the oil industry to leave the state. And then they create their own extra special grade of difficult to produce gasoline that no other state requires. And then?

This man is a idiot. #GavinNewsom #GavinMustGo #California

This is a joke right? You’re kidding…

This is like Gov. Cuomo ordering the Natural Gas companies to supply more gas after blocking pipelines.

The Dem party is ignorant of science and economics, but thinks it should lecture the rest of us on how to live.

Should be the quickest investigation ever… but not after he hand selects the “investigator”.

California regulations, the gas tax and the carbon taxes would be a good start when he’s done starting in a mirror.

It’s your fault. There, I took care of your Investigation for you. You’re welcome.

Enjoy those high taxes you voted for, and you keep electing the same people who also implemented a cap and trade tax on gas. You don’t even get to see how much that is, it’s built into the price. Surrounding states are laughing.

I needed a good laugh today! He knows why, and a phony investigation won’t make him look any less complicit.

High gas prices caused by high taxes to fund your boondoggles. Investigation complete.

It’s all the taxes and “fees” authorized by California lawmakers who don’t know how money actually works.

How about the 70 cents in state sales tax and the regulations that prevent the building of new refineries…that keep gasoline more scarce…Newsome and his crook cronies in Sacramento are to blame!

And finally:

The post Stunning: CA Gov. Gavin Newsom Orders Investigation to Find Out Why State’s Gasoline Prices are So High appeared first on RedState.

Westlake Legal Group 02f7c7e0-4bf6-401e-9693-e92c39291877-300x153 Stunning: CA Gov. Gavin Newsom Orders Investigation to Find Out Why State’s Gasoline Prices are So High Taxes Liberal Elitism Gavin Newsom Front Page Stories Featured Story Energy democrats Catherine Reheis-Boyd California CA high tax rate CA gasoline taxes Allow Media Exception Abuse of Power   Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

‘Recall Newsom’ Movement Begins in California and At Least One Hollywood Actor Is On Board

Westlake Legal Group GavinNewsomAPimage-620x317 ‘Recall Newsom’ Movement Begins in California and At Least One Hollywood Actor Is On Board Taxes recall elections Newsom immigration Hollywood Health Care Front Page Stories Featured Story elections corruption California Abuse of Power

Gov. Gavin Newsom discusses a report detailing the efforts by the DMV to improve customer services during a news conference in Sacramento, Calif., Tuesday, July 23, 2019. Some of the suggestions are to accept credit cards, upgrade the DMV’s website and offer clearer instructions on how to obtain a new federally mandated ID. (AP Photo/Rich Pedroncelli)

California’s Governor Gavin Newsom has been all over the news lately, setting himself up as the progressive answer to Donald Trump and coming out swinging over policies such as single-payer health care in the state, rights for illegal immigrants, challenging the NCAA on student athlete salaries, and his attempts to rein in California’s oil production.

Now two separate recall efforts have begun in the state, with at least one popular Hollywood comedian publicly supporting one of the movements.

Current congressional candidate Erin Cruz, from the Palm Springs area, launched her petition first in early August, accusing the governor of mismanaging the state and criticizing his support of certain policies. She specifically cited his Medicare for All proposal and laws helping immigrants living in the country illegally.

The secretary of state approved a second petition later in August from former congressional candidate Dr. James Veltmeyer, from the San Diego area. It says Gov. Newsom has violated the public trust in four areas: Health care for undocumented immigrants, tax increases, homelessness, and sanctuary state and cities policies.

The latter effort comes complete with a slick website and support from at least one Hollywood actor who has been fairly vocal on twitter about his dislike of some ultra progressive policies.

Veltmeyer’s effort gives four specific areas in which they feel Newsom has violated the public’s trust: health care for illegal aliens, tax increases, homelessness, and sanctuary state and city status.

Under California law, the voters have the right to hold a recall election to attempt to end the term of a state or local official. In 2003, the state’s voters successfully replaced incumbent Democratic Governor Gray Davis with Republican Arnold Schwarzenegger.

The post ‘Recall Newsom’ Movement Begins in California and At Least One Hollywood Actor Is On Board appeared first on RedState.

Westlake Legal Group california-2798001_1280-300x195 ‘Recall Newsom’ Movement Begins in California and At Least One Hollywood Actor Is On Board Taxes recall elections Newsom immigration Hollywood Health Care Front Page Stories Featured Story elections corruption California Abuse of Power   Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Biden: First thing we gotta do is go after people clipping coupons in the stock market

Westlake Legal Group biden-coupons Biden: First thing we gotta do is go after people clipping coupons in the stock market The Blog Taxes medicare for all Joe Biden clipping coupons class warfare capital gains

Last night’s debate may not have had a clear winner, but Joe Biden might not have even been in the running. In the last major debate, Biden advised African-American parents to make sure they had their “record player on at night” in order to build their child’s vocabulary, an answer that was considered both racist and hopelessly anachronistic. That set up last night’s apparent stumble — or maybe, maybe an attempt at humor that ended in a faceplant. YMMV:

Clipping coupons? We”ll get back to that, but it wasn’t Biden’s only problem in this answer — although you’d never know it by reading the New York Times transcript of the exchange. I included in bold what they left out:

BIDEN: No, look. Demonizing wealth — what I talked about is how you get things done. And the way to get things done is take a look at the tax code right now. The idea — we have to start rewarding work, not just wealth.  I would eliminate the capital gains tax — I would, I would raise the capital gains tax to the highest rate of 39.5 percent. I would double it. Because guess what? Why in God’s name should someone who is clipping coupons in the stock market pay a lower tax rate than someone who in fact is, like I said — a schoolteacher and a firefighter? It’s ridiculous, and they pay a lower tax. Secondly, the idea that we, in fact, engage in this notion that there are — there’s $1.64 trillion in tax loopholes. You can’t justify at minimum $600 billion of that. We could eliminate it all. I could go into detail had I the time.

Did Biden get confused about which audience he was addressing? That’s not really a mere slip of the tongue. Eliminating the capital gains tax, a longtime conservative/Club for Growth position that has not gained much traction in these populist times, and might be a bit anachronistic itself for that reason. It sounds as if Biden is having trouble keeping up and keeping his arguments straight, and that’s not a good look for a candidate who can’t manage to spike the football even with the other team mainly on the sidelines.

One has to wonder why the NYT didn’t transcribe that part of Biden’s answer, too. Do they make a habit of cleaning up Biden’s rhetorical missteps? If so, what other Biden-friendly edits have they made for their readers in the past?

It’s possible that Biden was being sardonic with his “clipping coupons in the stock market” line. It could be read as a sarcastic comment on the oh-so-tough lives billionaires lead, in a “while you’re broke and clipping coupons in the supermarket, these guys are clipping coupons in the stock market” class-warfare sense. It sounds like something a speech writer might have dreamed up for Biden to say as a lead-in to a typical class-warfare argument, a way to zing billionaires while charming his way into working-class hearts.

If so, Biden is terrible at delivering those punch lines. Even with that generous assumption, Biden injected only half of the zinger in the middle of a serious point that he’d already screwed up, as the NYT noticed as well. Put that together with his previous musings on the importance of record players in raising children, and it’s not charming at all. It looks more like a pattern that suggests Uncle Joe should seek retirement soon and maybe watch a little more Hee Haw than Maddow.

Finally, just on the substance of the answer, Biden’s still all wet. Even if one could wave a wand and eliminate $600 billion a year in deductions without harming the economy, that’s only a drop in the bucket when it comes to what Biden and his fellow Democrats want to add in spending. Medicare for All alone would add at least three trillion dollars a year, let alone the rest of the Green New Deal projects being pushed at these debates. Pretending that Biden and Democrats can lower the tax bill for the middle class while spending all that cash is even more incoherent than “clipping coupons in the stock market,” and Biden’s hardly the only one on stage suffering from that incoherence. Or dishonesty, but YMMV on that one, too.

The post Biden: First thing we gotta do is go after people clipping coupons in the stock market appeared first on Hot Air.

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Tax Rate for Billionaires Under Bernie Sanders’ New Plan: 97.5%

Westlake Legal Group BernieSanders-620x331 Tax Rate for Billionaires Under Bernie Sanders’ New Plan: 97.5% wealth tax Taxes President Obama Liberal Elitism Joe Biden Gabriel Zucman Front Page Stories Featured Story entitlements Emmanuel Saez Elizabeth Warren elections democrats Bernie Sanders Allow Media Exception 2020

 

Following their analysis of Bernie Sanders’ new tax plan, University of California, Berkeley professors Emmanuel Saez and Gabriel Zucman concluded that billionaires could face a new effective tax rate of 97.5%.

This figure dwarfs the estimated 62% effective tax rate billionaires would face under Elizabeth Warren’s plan or the 30.6% rate under Joe Biden’s. Currently, this group pays 23%.

(Note (Bloomberg): The calculations by Saez and Zucman cover state, local and federal taxes and also treat health insurance premiums that individuals pay as a tax, arguing that they are one of main drivers of inequality in the U.S.)

Determined to reduce income inequality and “spread the wealth around,” both Sanders’ and Warren’s plans include a wealth tax. Warren’s plan would “place a 2% levy on fortunes over $50 million and a 3% levy on assets over $1 billion. Sanders’ plan goes further, and starts taxing wealth of $32 million at 1%, increasing to an 8% tax on fortunes above $10 billion.”

In an email to Bloomberg, Professor Saez wrote, “With the wealth tax, you get directly at the stock instead of hitting the flow of income, making it a much more powerful de-concentration tool than income taxes.”

Professors Saez and Zucman support large tax increases for the wealthy. They have written a new book in which they argue for higher taxes. The book, entitled “The Triumph of Injustice: How the Rich Dodge Taxes and How to Make Them Pay,” is scheduled to be released on Tuesday. They have set up an interactive website which allows “users to select different tax rates to see how levies on various income groups are increasing.”

Back on the campaign trail following a recent heart attack, Sanders told supporters that his plan would likely cut the number of billionaires in the U.S. in half within 15 years and would generate approximately $4 trillion in additional tax revenue over the next ten years.

Raising taxes on the rich has traditionally been very popular with voters, the majority of whom believe that the wealthy don’t pay enough. The 2020 Democratic presidential candidates have exploited this. They’re trying to outdo each other in terms of how far they’ll go to stick it to the rich. In addition to raising income taxes and adding a wealth tax, some of their plans include a tax on stock and bond trades.

Since the number of billionaires in the U.S. is currently around 600, Democrats will need a lot more revenue than this to pay for all of the new social programs they’ve proposed. And that means they’ll be looking down the economic food chain to make up the difference. Don’t forget that Obama considered a couple earning over $250,000 to be rich. Try telling a New York City cop and his wife who’s a nurse that they’re rich and need to pay their fair share.

The post Tax Rate for Billionaires Under Bernie Sanders’ New Plan: 97.5% appeared first on RedState.

Westlake Legal Group BernieSanders-300x160 Tax Rate for Billionaires Under Bernie Sanders’ New Plan: 97.5% wealth tax Taxes President Obama Liberal Elitism Joe Biden Gabriel Zucman Front Page Stories Featured Story entitlements Emmanuel Saez Elizabeth Warren elections democrats Bernie Sanders Allow Media Exception 2020   Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Warren Has Overtaken Biden as Frontrunner, and This Is Bad News for Democrats

Westlake Legal Group warren-scowl-620x317 Warren Has Overtaken Biden as Frontrunner, and This Is Bad News for Democrats Taxes RCP Average radicalism polls Politics Middle class Joe Biden Front Page Stories Elizabeth Warren elections donors donald trump democrats Allow Media Exception 2020

FILE – In this May 18, 2019, file photo, Democratic presidential candidate Sen. Elizabeth Warren, D-Mass., speaks at a house party campaign stop in Rochester, N.H. Rising disagreement among congressional Democrats over whether to pursue impeachment of President Donald Trump has had little effect on the party’s presidential candidates, who mostly are avoiding calls to start such an inquiry. (AP Photo/Robert F. Bukaty, File)

The inevitable finally came to pass. It would appear that Sen. Elizabeth Warren has finally taken the top spot among the 2020 Democratic primary candidates, overtaking former VP Joe Biden as the frontrunner.

Late last month, Warren had overtaken Biden in an Iowa poll. Despite her lead there, Biden still had a 30.2 approval over Warren’s 19.8. In that short time, Warren not only closed the gap, but also passed Biden.

She now has a .2 lead over him nationally according to Real Clear Politics. Warren now has a 26.6 average while Biden has 26.4.

Westlake Legal Group Capture-3-620x470 Warren Has Overtaken Biden as Frontrunner, and This Is Bad News for Democrats Taxes RCP Average radicalism polls Politics Middle class Joe Biden Front Page Stories Elizabeth Warren elections donors donald trump democrats Allow Media Exception 2020

While this happened rather quickly, it shouldn’t come as a surprise. Biden’s approval had been in free fall for some time, thanks to his incessant gaffes and embarrassments. Now, with him and his family in the spotlight over the Ukraine scandal, Biden has become too risky.

While this may be good news for Warren, it’s not necessarily good news for Democrats. Warren has taken the mantle of radicalism within the party, and Americans have shown that they’re fully ready to reject that. Even worse for the Democrats is the fact that major Democrat donors have threatened to remove their money from the Democrat party and give it to President Donald Trump if Warren ended up being the primary winner.

(READ: Big Democrat Donors Threaten To Switch To Trump If Elizabeth Warren Wins The 2020 Nomination)

The reason for this is that Warren is openly at war with business. She has sworn to attack the banks and rich CEOs should she be elected, and not only do those banks and CEOs not like that idea, but many people who are employed by these rich people also don’t like it either.

But the crippling blow to her campaign is the fact that Warren has promised a lot of “free” stuff to Americans, but refuses to tell us how she’s going to pay for it. She has been asked repeatedly and very directly, even by leftist pundits and talking heads, if she plans on raising taxes on the middle class.

Warren has done everything her power to avoid answering that question.

(Watch: Warren Dips, Dodges, Ducks, Dives, And Dodges Answering If She’ll Raise Middle Class Taxes)

Warren may have taken the lead in the Democratic party, but it’s a shrinking party thanks to people like Warren driving voters out and into the arms of Trump.

The post Warren Has Overtaken Biden as Frontrunner, and This Is Bad News for Democrats appeared first on RedState.

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Watch: Warren Dips, Dodges, Ducks, Dives, and Dodges Answering If She’ll Raise Middle Class Taxes

Westlake Legal Group Fauxcahontas-620x413 Watch: Warren Dips, Dodges, Ducks, Dives, and Dodges Answering If She’ll Raise Middle Class Taxes Taxes primary Politics Middle class Front Page Stories Featured Story Elizabeth Warren elections donors donald trump democrats Allow Media Exception 2020

Sen. Elizabeth Warren, D-Mass., winks as she jokes with other senators on the Senate Banking Committee ahead of a hearing on the nomination of Marvin Goodfriend to be a member of the Federal Reserve Board of Governors, Tuesday, Jan. 23, 2018, on Capitol Hill in Washington. (AP Photo/Jacquelyn Martin)

Democratic primary candidate for the 2020 presidential election and Massachusetts Senator Elizabeth Warren is going to raise your taxes if she gets into office.

We know this because she’s doing everything in her power to not answer the very simple and direct question as to whether or not she is. What she wants to do instead is give you flowery talk about how “Medicare for all” is going to bring your overall medical costs down, but doesn’t want to talk about the messy business of how she plans to pay for it.

Which is, of course, raising taxes on the middle class.

The Washington Free Beacon put together a pretty nice little supercut of all the times Warren was asked point-blank if she’ll raise taxes on the middle class and you can watch her play a game of dodgeball with the question. Even people like “Hardball” host Chris Matthews seems to get frustrated with Warren’s refusal to address the question directly.

One thing that Warren has firmly established is that a White House with her in the Oval Office is going to cost you a lot of money. Not only is she going to raise taxes to pay for all the “free” stuff she plans on giving away, but she’s also going to come down hard on the businesses as well in order to make those dastardly job providers cough up their “fair share.”

So much so that even big Democrat donors are threatening the DNC that they’ll walk away and sign on with President Donald Trump for his 2020 campaign in the general election if she wins the Democratic primary.

(READ: Big Democrat Donors Threaten To Switch To Trump If Elizabeth Warren Wins The 2020 Nomination)

While Warren has momentum within the gaggle of primary candidates, it’s unlikely that she’s going to win a general election against Trump who continuously receives support in the form huge cash donations, packed rallies, and rising poll numbers.

Warren can’t even keep dyed in the wool Democrat donors.

 

The post Watch: Warren Dips, Dodges, Ducks, Dives, and Dodges Answering If She’ll Raise Middle Class Taxes appeared first on RedState.

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