4 ms·
This is slightly misleading. The federal tax rate is a tiered system, meaning a portion of your income is taxed at a certain rate and income that exceeds that t
by georgeplusplus 6y ago
This is slightly misleading. The federal tax rate is a tiered system, meaning a portion of your income is taxed at a certain rate and income that exceeds that tier is taxed at a different rate after that and so on.
The federal tax rate is much lower if you account for that.
- beagle3 6y agoOp did say “marginal rate”
- nicoburns 6y agoYes, but you'd be amazed at how many people don't understand what that means. No doubt it's not true on HN, but a lot of people among the general public seem to be under the impression that the effective rate jumps at thresholds.
- learnstats2 6y agoI personally know someone who turned down a payrise for this reason.