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> It still does mean that she had to pay more than she earned No it does not mean that. It's a marginal tax rate, not an effective tax rate.
by BoiledCabbage 9y ago
> It still does mean that she had to pay more than she earned
No it does not mean that. It's a marginal tax rate, not an effective tax rate.
- 1123581321 9y agoA marginal tax rate of 102% will become an effective tax rate of 100% when the amount above the margin line is 50 times greater than the post-taxed portion below the line. I'm not familiar with the author's situation but standard marginal rate assurances stop applying when the tax rate exceeds 100%.
- BoiledCabbage 9y agoCompletely agreed, but again not a case of paying more than your income (it'd be paying your full income), and also, not what happened in this case.