Question for You

I'll keep going as long as I can. I hide or defer from taxes as much of my income as I legally can now. But if Congress tries to cut into my 401K or pension fund, that may be the last straw. The real question is how far can the Government, at all levels, go before they destroy the country.

Taxes will increase on people over $250K but revenue collected will stay flat or go down thanks to tax strategies, wont be long until they decide over $150K is rich so they can make up the revenue. Not the first time its happened.

I dont think there is a give up point, but there is a point when it becomes a focus. I would rather defer income or pay more for a god tax accountant then pay the government. There is a lot you can do regarding legal tax avoidance strategies. at 35%, sure, Ill pay the tax. 45% its getting a little high, time to investigate more aggresive strategies. 50% - game over Ill pay as little as legally possible even if it costs twice as much in accountant cost - at lease he earned the money.

I don't see a promotion or pay raise headed my way should B.O. get anointed (be lucky to just hold on to my job as it is), so it's a moot point. I do, however, see my self supplementing my taxable income with cash, "tax free" income.

Considering your list of taxes federal, social security/medicare, state, local and property most Americans are already closer to 50%. Don't forget to add sales tax too. I personally monitor my income and as the higher brackets approach try to make sure that the years income increases above the higher bracket by enough to net me more dollars. If I can't exceed the bracket by enough I will slow down my work schedule and defer income into the next tax year. Back to your question, 50% will make me not work as hard.

BTW, I believe Mr. Laffer has a curve that answers the question.......

What is my 'break point'? It is the point at which I am no longer working mostly for me, and rather am working mostly for someone else. From my point of view, the fruit of my labor should be mine. Sounds simple, but somehow our elected representatives and their legion of dependents have ignored this concept for years. In this case, it would be a 50% net rate on each additional dollar of gain. Admittedly, I would not be likely to go backwards even if (and when) rates are jacked up. However, I am certainly NOT going to put forth any effort to make more if I keep less than half of the increase. That would seem to be the very definition of a "diminishing return".

I think I am there already :)

As soon as I feel like I am paying to watch others not work. It is getting close.

I don't give up! I simply refuse to give it to the feds to redistribute any longer.

It does not matter the rate, after the current bailout spending bill I am going into the underground economy and the feds will get no more of my hard earned money.