NPCs and Taxes

One of the great things about following people on X is that you get news faster and from different points of view.

One of the worst things about X is that you get idiot NPC talking points dumped into your feed constantly.

For the last three weeks, every weekend, there is a spat of NPCs telling me that Trump has gone golfing. That he has gone golfing every weekend since he took office. That his golfing has cost some number of millions of dollars. The number is the same across every post.

This week, the talking points included that Trump was golfing while there were fires on Long Island. How can he be so cruel. And he went golfing last weekend during the fires in North and South Carolina.

Last weekend it was about how the fires in the Carolina’s were happening despite the claims of good forest management. Claims that there wasn’t water to fight the fires. While showing the same video of firefighters using water to fight the fires.

The biggest NPC talking point has been on “Tax cuts for Billionaires.” The claim is that Trump is taking money away from veterans, the sick, and the elderly to give to his “billionaire friends”.

If you open the curtain and peek behind it, you find that they are lying.

So let’s do a little numbering.

We are going to look at somebody making $12000/year, $50,000/year, $100,000/year, $500,000/year, and a million dollars per year.

We use a progressive tax rate, so as your income goes up, so does your tax rate.

Somebody with an income of $1,000,000 pays 328 thousand dollars in taxes. If everybody got a 1% tax cut, he would get to keep $3,281 of his money. The person making $50k per year would get to keep $500 of his money. Oh my goodness.

So what are these huge tax cuts that “Trump gave his billionaire friends?” The Trump tax cuts apply to everybody. The NPCs claim that everybody getting tax cuts is not fair because a millionaire gets $3k back, but regular folk only get $500 back. This is so horrible, that they proposed an amendment that would have increased the tax rate of people making more than $999,999.

This would have added another tax bracket. They are literally saying that if we don’t raise the taxes on those making more than $999,999 we are giving a tax cut.

It doesn’t make sense to anybody except NPCs.

This entire talking point also avoids the question of how billionaires make their money.

If I was working a full-time job and pulling in a billion dollars per year, I would be charging $480,769.23/hour.

It isn’t happening. A million dollars per year income is only $480/hour.

Yes, there are some professions that charge at the $500 to $1000 per hour rate, but they are generally not taking it all home. Instead, that hourly rate goes into paying for many people.

What a millionaire does is they make money by investing. Pretend you made $174,000 in 2024. After paying all your bills, you might take home $50 to $75 thousand for fun stuff.

Now, supposed you took that $50k and invested it in a stock, like $TEM in January 2025 at $32/share. If you sold it at the end of February 2025 at $89.44 you would have made a profit of $89k. Not a bad return over the course of a month.

This is a short-term capital gain which gets taxed at your as above, according to your tax bracket. On the other hand, if you hold that stock for a full 12 months and then sell it, you would only get taxed at 15%, not 24%. That is a 9% savings in taxes.

If you were to have a taxable income of over $533k/year, then your rate would be 20% on that $89k, not 37%. That translates to savings of $15,140.

Trump is not talking about cutting the capital gains taxes. He is talking about income tax changes.

This is the same language game that congress critters make every year. “We made cuts to the budget!” translation, “We aren’t going to spend as much as we wanted to. We are only spending $500,000 more, not the $3.3 million more we wanted”

A cut is when the amount spent this year is less than the amount spent last year.