3 ms·

This is a quibble, but 35% for the top bracket of your income is not the same as a 35% federal tax. You would need to be a quite high income for this to be true

This is a quibble, but 35% for the top bracket of your income is not the same as a 35% federal tax. You would need to be a quite high income for this to be true since the top bracket currently is 37% and the second highest is 35%. Someone making $200k today has an effective tax rate of 20%. You would need to make $2 million today to have an effective tax rate of 35%. https://smartasset.com/taxes/income-taxes https://smartasset.com/taxes/income-taxes EDIT: Aren't state and local taxes also deductible from federal income taxes? I'm certainly not a tax expert, so correct me if I'm wrong.

toast0 6y ago
> Aren't state and local taxes also deductible from federal income taxes? Yes, but the Trump tax changes put a $10,000 cap on this deduction, which is significantly lower than the standard deduction. Combined with low mortgage interest and the lower cap for new mortgage balances whose interest is deductable, a lot of people went to the standard deduction.
triceratops 6y ago
> This is a quibble, but 35% for the top bracket of your income is not the same as a 35% federal tax. That's not a quibble at all, it's a very important point. The number of people who confuse "tax bracket" with "effective tax rate" is regrettably quite large.