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I don't know too much about tax rate, but that 50% tax rate is high on a 250k salary unless the state that person is in have state tax, county tax, municipality tax etc...
Debt pissing contest
Started by AlmostAnMD
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Yeah you clearly don't know much about tax rate. Yes, most states have what is called "state taxes" (shocking, I know) and that is added to your federal taxes, as well as your social security cuts, medicare/Medicaid, etc. so in the end 50% is pretty accurate for many people in the physician salary range of $200+ ( we will leave out the poor FM/peds people )
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You can practice in another state until whatever happened in the first state catches up to you....
Don't have kids.
Have a money vault like scrooge mcduck!
You can get significant scholarships at ****ty law schools, if you have decent stats. I mean the chances of working as a lawyer are lower than an MD working as a doc, DMD working as a dentist, etc., but the idea is that law school isn't necessarily as expensive as med school.
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$117,000
Oh god, four poor souls over 600....what the hell
You should have left the <100k bracket so we could see how many people end up with no debt to help explain average debt figures being as low as they are.
The AAMC provides that for you - 16% with no debt; 21% with less than 100K
16%!?!?! Wow, that's huge!!
You apparently don't understand what generally means. Good thing you'll be able to pay financial advisors to figure out all this stuff for you on that derm salary.
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Yeah neither do you bud. Only in the absolute worst case scenario (living in some expensive locality in california, single, with nothing to deduct ever, never socking anything away into a 401k/IRA) would you even come close to getting half your salary cut at 250K. Go ahead and try it. It's in no way "pretty accurate" for "many people".
That includes HPSP and prior military using benefits as well. There's about 9-11 students in my class alone which comprises about 6% of the class.
Honestly it is not exactly 50% tax rate but it can come pretty close in some areas of the country where there just so happen to be a ton of physicians located (California, New York, etc). That in mind you're right. The federal tax rate on $250,000 is 33% which comes out to $63,0000 (as per IRS calculator). Then you have, in my case, Missouri taxes, which is $6,100 (as per MO tax calculator). Then you have SS and Medicare, which come out to another $6,000 (as per FICA calculator). So 63 + 6 + 6 ~ $85,000 withheld, which also doesn't include any local taxes.
$250-$85 = $165K. Alright so its not quite as low as $125k. Maybe I should have said a person living in a state with relatively cheaper or average state tax rate will have ~ 34% taken out. Its still a lot, regardless, and again this is an example of Missouri which as far as I know has a very reasonable tax rate compared to East/West coast states.
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For undergrad?
Oh, HPSP and military definitely doesn't count. I guess I'm more talking about the kids whose parents pay their entire tuition and fees out-of-pocket.
No, undergrad debt free for me.
Med school or dental school, whichever I go is going to be less than 80K.
I feel really luckily to have a so low tuition here.
This really isn't true. You need to read WhiteCoastInvestor's blog.
http://whitecoatinvestor.com/10-reasons-why-i-pay-less-tax-than-mitt-romney/
http://whitecoatinvestor.com/doctors-dont-pay-50-of-their-income-in-taxes/
Using the 4% rule, retiring with a $5million nestegg means you can live on 200K. On a $1.2million retirement, you're looking at a sparse $48K per annum that you can pull out (a decidedly middle class amount). I would consider that difference very significant.
Just to play devil's advocate, here's some more reading:
http://whitecoatinvestor.com/physicians-are-rich-guest-post/
http://whitecoatinvestor.com/personal-finance/how-to-get-rich/
I'm not saying it isn't significant. What I am saying is, you will not be "rich" - I will read the links though for another perspective, but I'm telling ya, physicians aren't rich!
$200K per year in retirement isn't rich? 😵
You guys that htink you can moonlight and pay off 150k in debt are nuts. We moonlight for 60/hour as PGY2's and 180/hour as PGY3' and we won't supplement our income by more than 20k during the two years. It's a nice bonus at the end of a month, but it's not going to do jack to your debt.
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Not gunna lie, kinda want that cat.
That is a huge difference.... That is 40k difference, which if you save for 10 years will be 400k...
I knew it could not be that high, but I don't like to argue about stuff that have not done my homework on...
Making that photo your avatar was a good life decision, let me be the first to congratulate you
That's ok buddy; at least you did not double down.
Edit: Your calculation was wrong... It's almost 38%...
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These people think at the end of residency they can pay off their entire student loan debt in less than 5 years (bc they'll have no other expenses, of course).
You like
......yup...but now I'm a little uncomfortable...moving on
Don't worry, my wife's got a leash on it.
I think that actually makes me more uncomfortable. Doesn't it catch on things?
There's only one way to find out 
No but seriously. Student debt sucks
No but seriously. Student debt sucks
I feel like I should have had right of first refusal or something
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Speaking of debt and such, I'm browsing some quotes on healthcare plans and for me and my wife, both having no pre-existing conditions, no smoking, etc, young age, we cost $500+ /mo for bronze plans? That can't be right can it?
That sounds pretty high, but it depends on where you live. It's around that much for a semester via my schools plan. My wife gets it through work: she pays significantly less, for better coverage.
Congrats! You get to pay for those diabetics/lifetime smoker/obese insurance consumers who can't afford to pay the full amount for their heath insurance.
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Presumably the employer is covering a large percentage of this premium.
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