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There's no discontinuity in the first year you exceed $1m: that extra dollar is "taxed" at 30%, but the first $1m is at 15% ("the standard commission rate will
by mjs 6y ago
There's no discontinuity in the first year you exceed $1m: that extra dollar is "taxed" at 30%, but the first $1m is at 15% ("the standard commission rate will apply for the remainder of the year").
Looks like the next year (after exceeding $1m) the first dollar will be taxed at 30%, though.
They should just make this work like income tax: the first $1m is taxed at 15%, and everything above that is at 30%. (Same rules every year, no flip-flop.)
- mpweiher 6y agoMaybe that makes it look a bit too much like the tax it is for comfort.
- mjs 6y agoThe way the rules are now seems like there's a very big incentive to avoid earning a little bit more than $1m. This could have … unintended consequences. (e.g. if it looks like you're going to earn a little bit over $1m, increase prices by a lot (to discourage purchases), but tell people the app will be "cheap" again in January. Or even make the app free for a while.)