The North Dakota legislature is attempting to rewrite the tax code… For THEIR benefit,or well for someone’s benefit. Certainly not ours.
‘[Announcing] a landmark tax relief plan that would replace the state’s individual income tax rates with a single, lower flat tax, saving North Dakota taxpayers an estimated $250 million annually “
There they go again, “saving us.”
But let’s ask, “Lower for whom and who is saving this $250 million?” Certainly, it’s not going to be lower for me and my family as we don’t make $500,000 a year.
Our taxes are in the “sweet spot.” Yup, we in that lucky group of people who’s taxes will go UP, with this new plan. The people who had had a 1.1% tax rate, and will now joyously surrender 1.5% to income tax.
It’s not as if we should be surprised:
Guess who’s taxes are going to be waaaay less if/when this passes? Those who earn over $500,000 a year (both single and married filing jointly) will see there taxes drop from 2.9% to 1.5%. (Other high income brackets too.) Well, that’s one way to ensure you continue to get donations from your “campaign supporters.”
Those who “know better” will tell you it’s not that simple. Well I did a little math and used an online tax calculator:
- Single, $45,000 income:
- Current income tax = $381.16
- Flat income tax = $472.50
- 124% of the previous tax rate
- Married, filing jointly, $90,000 income:
- Current income tax = $890.67
- Flat income tax = $1350
- 151% of the previous tax rate
- Single, $550,000 income:
- Current income tax = $13,242.53
- Flat income tax = $8042.25
- just 60% of the previous tax rate
- Married, filing jointly, $550,000 income:
- Current income tax = $12517.91
- Flat income tax = $7834.50
- just 62% of the previous tax rate
Hot d- that’s a pretty nice plan… …for those guys. Noone, “But Just A Mom, 1.1% to 1.5% is only a .4% increase. Chill lady, that’s not that bad.”
Okay. Nevermind that the actual numbers work out differently. Nevermind that it appears that our legislature might be buying votes by screwing over the little guys. Nevermind that it continues:
This new flat tax this affects estate and trust taxes too.
‘Course if you look up the question, does North Dakota have an estate tax, the answer is no. Trust tax? Also no. Little trick of the law here, what we have is a “fiduciary tax.” See?
So, if your wealthy enough to have a “fiduciary tax” (wink wink) welcome to the amazing world of tax breaks for the rich. Sucks huh? Well that’s not why I’m throwing a digital red flag.
Here’s my biggest issue with this plan. Estate and trust taxes… Ya know, like after your elder relative dies… These particular taxes are an up and coming concern for many. Why? This little thing called excess death:
See, all cause death rates are on the rise. Drastically so in many cases.
Analysis of CDC data (none of these graphs are mine) show the ridiculous, ridiculously bad, increases.
It occurs to me that our Gov’ern-ment looked at the rising death rates and rather than seeking to promote health, they said to themselves,
“Well darn it. If we’re gonna keep doing this, we should like totally lower “fiduciary taxes” first. Hmmm… How can we get away with that??? Oh! Flat tax! People will eat that BS up. Plus, we can lower our regular taxes too! Who doesn’t love a simplified “lower” tax rate? Amiright?”Someone, somewhere in the capital
Agree with my crazy convoluted concerns or not. The new flat tax plan is great… For the rich.