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It can if you combine a marginal Federal Tax with a State Flat Tax. Not all tax systems are progressive
by SamAtt 17y ago
It can if you combine a marginal Federal Tax with a State Flat Tax. Not all tax systems are progressive
- encoderer 17y agoOk, I'll bite... How? A state flat tax will tax this new raise at the same flat rate as all the existing pay. The marginal federal tax will tax the new raise, in your scenario, at the new, higher tax bracket. But your scenario would have the gov't taxing this new cash into the red, reducing her take home pay. That's not gonna happen. Period.