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I think the math of going from $300k to $150k went by too quickly for me. Can you go over it in a little more detail?
by vostok 9y ago
I think the math of going from $300k to $150k went by too quickly for me. Can you go over it in a little more detail?
- flak48 9y agoTax (federal + state) in California is close to 50%
- bsvalley 9y ago300k gross income at 50% income tax is $150k net.
- actsasbuffoon 9y agoThat's not how tax brackets work. You only pay the higher rate on the income over the bracket. For instance, (assuming you're filing single) you pay 10% tax on the first $9,525 of income. You pay 12% on the next $21,175, and so on. Here are the tax brackets for this year: $0.00+ 10% $9,525.00+ 12% $38,700.00+ 22% $82,500.00+ 24% $157,500.00+ 32% $200,000.00+ 35% $500,000.00+ 37% Only 1/3 of your income would be subject to a 35% tax rate. Less than half of it would would be hit by a 32% rate. The majority of your income would be taxed at 24% or less.
- softawre 9y agoPeople not understanding progressive taxation on a thread about making 300k+ is a bit funny.
- antisthenes 9y agoI wonder how many libertarian ideologies get forged simply because they don't understand progressive tax rates.
- krapp 9y agoIf you already believe taxation is theft, why would you bother with the specifics?
- dragonwriter 9y agoIME, lots of people start out with revulsion to the specifics (often based on popular misunderstandings of those specifics) and only later adopt a “taxation is theft” ideology to rationalize that revulsion. So, I understand GPs question.
- majewsky 9y ago> So let's assume you live in the Bay Area (California). New Federal income tax is 35% for that salary range then add 13% coming from beautiful and sunny California. We're at a 48 % tax rate. Let's round that up to 50% to simplify our maths. What's unclear about that? 35% + 13% = 48% = about 50%. After that, it's just a matter of removing 50% from 300k to arrive at 150k.
- overeater 9y ago35% is the marginal tax rate. The actual tax on 300k is 27%.