The BullNBear Corner

[BullNBear52]

It certainly does. A husband and wife can work for different companies. As soon as either ones wages pass $200K the extra WH on Medicare kicks in regardless if they will not exceed the $250K limit combined. They'll get a refund when they file a joint return.

A similar thing happens if you change jobs during the year and you already passed the SS limit at your first job. The new employer is required to start anew the WH for SS. The taxpayer will get the refund when they file their individual tax return for the multiple W2s issued with excess SS paid. The employer for his part loses.

Also FICA taxes sometimes called payroll taxes do not factor into an individuals federal effective tax rate. That is based on income taxes paid after determining your adjusted gross income.

FICA taxes go into a trust fund on behalf of the employee. They have nothing to do with your effective tax rate since everyone has to pay them and the rate would still be the same since they are flat tax rates. And before you come back with your usual horseshit response the excess .009 is a variable; but has nothing to do with the effective tax rate since it is not an income tax.

And to further enlighten you when Congress reduced the WH on SS by 2% Treasury had to kick in the extra 2% since by statute the contribution is 6.2%. So even though that tax was reduced it increased the deficit.

Now regarding the AMT,

I've had that conversation multiple times over the years with people who have exercised and sold ISOs same day. They simply screwed themselves.

Now please spare me the horseshit, BS etc when it comes to an effective tax rate. You simply don't know what you are talking about.

All other taxes are variables. You live in the tristate area you're screwed ditto CA and HI.

You pay use or consumption taxes they don't count either because they again are a variable.

The guideline always has been the federal effective income tax rate.

Ask the candidates who are running for president. None of them simply meet your numbers.

Now if you are paying 40% or more to the feds you really need a tax advisor.