The debt-ceiling deal: Winners and losers

[FBD]

That's why this "compromise" is a joke, just like we knew we'd get with Obama in office and Reid controlling the senate and even filibustering his own bill!

By that measuring stick, simply freezing spending would be "saving 400+billion"...

I cant believe "savings" means "dont spend at such a high rate, just lower it a bit....a tiny bit..."

And then a bunch if left to commission, where the democrats have already tipped their hand and said they'll be looking for tax increases.

How's about some spending cuts, assho's? Ya know, REAL ones?

[Acid Trip]

So for example...

If you made $200,000 in 1945 they would take 94% of your money? That leaves you with $12,000 to live on...

While someone making $50,000 @ a .78 was left with $11,000 to live on..?

That can't be right..

That's now not how taxes work. They were taxed at 94% for every dollar OVER 250k. The first 250k was taxed at the listed rates. How long have you guys been paying taxes without knowing how tax brackets work?

[Muddy]

That's now not how taxes work. They were taxed at 94% for every dollar OVER 250k. The first 250k was taxed at the listed rates. How long have you guys been paying taxes without knowing how tax brackets work?

My accountant knows how they work just fine...

[KevinD]

That's now not how taxes work. They were taxed at 94% for every dollar OVER 250k. The first 250k was taxed at the listed rates. How long have you guys been paying taxes without knowing how tax brackets work?

Let's have a look at the data involved in MG's statement:

1945 tax rates:
93% $150,000 to $200,000
94% $200,000 to infinity

BUT at the bottom is a note:

Note: Tax rates include normal tax of 3 percent plus applicable surtax. The maximum effective tax rate on net income was 90 percent. Last law to change rates was the Internal Revenue
Code of 1945.

This tells me that in 1945 I would have been charged a maximum of 90% if I made $200,000.

Furthermore, if I made anywhere between $150,000 and $200,000, I would have still been taxed at 90%. Without the maximum rate being specified, from $150,000 to $200,000, I would have been taxed at 93%. From $200,000 up, I would have been taxed at 94%. So say I made $199,999...tax rate would be 93%. $200,001 = 94%