Investment

» allancoleman - Tax bracket & effective tax rates

Recent question asked on Vanguard's Bogleheads discussion forum :

http://www.diehards.org/forum/viewtopic....

I like to use my effective tax rate to compare the tax rate on my Roth conversions . In the beginning I paid as much as a 22% effective tax rate . My last Roth conversion was done at a 13% effective tax rate . This year's Roth conversion that will be done in the 15% marginal tax bracket should be my lowest effective tax rate yet . However after this tax year I will be going back to the 25% marginal tax bracket to accomplish the rest of my Roth conversions before I reach RMD age of 70 after which time I'll figure if I want to continue my Roth conversion strategy and take RMDs too .

-- posted by allancoleman

» allancoleman - State income tax question

http://www.diehards.org/forum/viewtopic....

Although my resident state of Alaska doesn't have a income tax , when I sold my Hilo condo years ago on the Big island , the Hawaii state income tax software in TurboTax was very handy . And when I sell my remaining building lots in Puna near Hilo , it'll come in handy again .

-- posted by allancoleman

» pink101 - Tell Me

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Apparently there are some participants who consider themselves to be quite knowledgeable about things of financial and economic importance.
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What is the difference between a tax levied by a government and an overhead margin levied by a private provider of products and or services?
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-- posted by pink101

» allancoleman - Tell Me

In response to Tell Me posted by pink101:

Not considering myself to be knowledgeable about things of financial and economic importance , pink101 , I'll leave for question for others here to answer .

However I will say that for myself , a tax is a tax is a tax , no matter who I have to pay it to .

-- posted by allancoleman

» pink101 - Tell Me

In response to Tell Me posted by allancoleman:
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So, the fact that the cost of oil per barrel has been raised from under $25.00 to hovering about $100.00 during these two wars on Iraq doesn't require a lot of brains to know that the difference is a tax increase on the American consumer.
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The difference is that the people don't benefit when the taxes are paid to the oil cartels.
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I would far rather pay my taxes to my inefficient government and see our society benefit than to pay them to the oil cartels that are so highly efficient and help the rich get richer and the poor get poorer.
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Conservative politics is the result of overdosing on capitalist B.S.
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I'm all for nationalizing energy resources.
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-- posted by pink101

» Normxxx - Tell Me

In response to Tell Me posted by pink101:

I'm all for nationalizing energy resources.

You mean Iraq, Iran, Saudi Arabia, UAR, Venezuela, Russia, etc.?

I thought we were in process of doing just that!?!

-- posted by Normxxx

» allancoleman - Tell Me

In response to Tell Me posted by pink101:

I'll leave it up to you , pink101 , to determine who you'd rather pay your taxes to . From a long time Alaskan's viewpoint , the oil industry provides our state with revenue and excellent high paying jobs that are year round and providing our local refiners with crude that gets us less expensive gasoline costs than those in the lower 48 .

I'm NOT for nationalizing our energy resources . If anything , I'd like the see the cost of energy higher to force the population to conserve more . I use so little energy , they could double the cost of everything from gas to electricity to food and I'll still walk or ride my bicycle to the local food market and eat fresh .

-- posted by allancoleman

» permabear - Tell Me

In response to Tell Me posted by pink101:

Pink,

You make a very interesting and thought provoking point. Conservatives yap on and on day after day after day about how burdonsome taxes are and how wasteful government spending is. But your point is that at least the money stays inside the U.S. economy and is recycled back stimulating further growth. When Americans pay high prices for oil, or for goods produced overseas for that matter, we are sending our hard-earned dollars overseas to benefit foreign companies, individuals and governments. When the U.S. runs trade deficits of 6 percent of GDP, we basically are going into debt to foreigners who use the surplus dollars often to invest back into U.S. treasuries and investments, which do provide short-term stimulation back into the U.S. But in the long-term what we are doing is slowly transferring our wealth to foreigners. Debt is a self destructive thing. The U.S. has just been building up incredible amounts of debt in recent years. It will ultimately end up in a severe decline in the standard of living of Americans and a decline in the superpower status of the United States. All the while conservatives complain about taxes and spending, when taxes and spending are the least of our problems.

I've kind of gone along with the Clinton/Rubinomics approach to free markets, but am beginning to have second thoughts. The conventional wisdom is that free markets are good for any individual country's economy and for the world economy. Historians point to the U.S. attempts at protectionism as one of the biggest contributors to the Great Depression. But when you look at where the U.S. is today. Free market capitalism, especially when it produces budget and trade deficits year after year after years, is slowly producing the problems I discussed above. Perhaps the isolationist like democrat Richard Gephardt and republican Pat Buchanon were on to something when they emphasized the importance of keeping jobs within the country and protecting workers here. Because what we're doing now appears to be contributing to bad things for the U.S. in the long run.

-- posted by permabear

» halochie - owe tax

I missed an interest income from treasury on my taxes last year. Now I owe the govt. $10000 plus a whopping 8% interest. I would like to know where they are getting those kind of yields? Last year the best rate we got was 6%. I think I am moving up to the mountains and fortifying it. It will be another waco. If you hear any standoff on the news that would be me.

-- posted by halochie

» allancoleman - owe tax

In response to owe tax posted by halochie:

Maybe the IRS has their money invested in Vanguard's High - Yield Admiral class junk bond fund ( VWEAX ) that's presently paying 8.79% , halochie .

One of the reasons I keep my sizeable bucket number one money that normally has several years worth of living expenses in a tax exempt money market fund is so I don't have to deal with taxes on that bucket . My taxable money is very small in my other emergency bank accounts .

-- posted by allancoleman