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> The graph in article is effective, not marginal. The article is not very clear on that, and there is nothing to indicate such on the plot itself (which will
by vonmoltke 7y ago
> The graph in article is effective, not marginal.
The article is not very clear on that, and there is nothing to indicate such on the plot itself (which will be taken out-of-context at some point).
- my_username_is_ 7y agoIf you have a basic understanding of tax rates in the US, this shouldn't come as a surprise. The marginal tax rate always goes up as you earn more income, so for the graph to show it going down then it must be the effective tax rate. But I agree, it probably will be taken out of context and unfortunately not everyone has even a basic understanding of how taxes work.
- mcguire 7y ago"The overall tax rate on the richest 400 households last year was only 23 percent, meaning that their combined tax payments equaled less than one quarter of their total income. This overall rate was 70 percent in 1950 and 47 percent in 1980."