2 ms·
Right. Yeah, with ours you do hit the top bracket (45%) at $180K but the actual percentage of tax across all income (the marginal rate) means that you're still
by stephen_g 9y ago
Right. Yeah, with ours you do hit the top bracket (45%) at $180K but the actual percentage of tax across all income (the marginal rate) means that you're still only paying just over 30% at that point ($18,200 free, 19% of $18,200 to $37K, 32.5% of $37K to $87K, and 37% of $87K up to $180K = $54,232, which is about 30.1%). Even by the point you're making a million dollars a year you're still only paying 42% marginal rate, even though you're well into the 45% tax bracket.
I'm generally not super opposed to having a rate as high as 60%, but the point that kicks in with Sweeden's system does seem very low...