3 ms·
Almost but not quite - at high ends of salary the marginal tax rate is 38%, so $50k->$100k doesn't necessarily make you richer, it just makes Uncle Sam happier.
by zdgsg 8y ago
Almost but not quite - at high ends of salary the marginal tax rate is 38%, so $50k->$100k doesn't necessarily make you richer, it just makes Uncle Sam happier.
- sincerely 8y agoWell, if your workload would be the same either way, you'd want to be in a world where there are more tax dollars than less :)
- closeparen 8y agoNot really - the same tax dollars buy less service and infrastructure when the workers and suppliers also need to function in high CoL areas. A $2.5bn mile of subway in New York isn't a priori better than a $600bn mile of subway in Seattle. A $59k entry level teacher in San Francisco isn't a priori better than a $33k entry level teacher in Wisconsin.
- allendoerfer 8y agoA mile of subway in New York serves more people. But I get the notion.
- seanmcdirmid 8y ago$600bn for a mile of subway in Seattle is absolutely nuts, I hoe that is a typo.
- closeparen 8y agoMillion, sorry.
- hyperbovine 8y agoBy my calculation it makes you 62 cents richer for every dollar you earn.
- EADGBE 8y agoExactly. Parent is exaggerating. Also, highest tax bracket is 37% (2018). Yeah, I'm arguing about 1%, but that's also for individuals making over 500k, or couples making over 600k. 50k to 100k income raise bumps you up 2% in tax rate from 22% to 24% (assuming individual). If parent was talking about raise on top of what they have, then the worse affected rate of change would be the 24% rate ($82,501 to $157,500) to 32% rate ($157,501 to $200,000). These numbers are similar, but less affected with MFJ.