4 ms·
That'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
by actsasbuffoon 9y ago
That'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.