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>especially my income is at the boundary between two tax brackets Wait, can you explain how tax brackets work because I think there may be a fundamental misund
by loopercal 6y ago
>especially my income is at the boundary between two tax brackets
Wait, can you explain how tax brackets work because I think there may be a fundamental misunderstanding here.
If we have two brackets, 10% for <=$100 and 90% for >$100, what do you think the tax bill would be for someone who earned $101?
- gamblor956 6y agoIt would be $10.90. $10 for the first bracket. The remaining untaxed income is $1, taxed at 90% = $0.90 tax. But the Republican Party has spent a lot of money to make people think that the tax would be $90.90 (i.e,. a flat rate), which is why so many people are opposed to increasing the tax bracket rates...even though the actual affect is marginal to most people (even those affected).
- loopercal 6y agoThe smartest person I know, idolized him since I was a kid, had that same misconception last year when we were discussing top end tax brackets. I feel like every April news orgs should just run segments with accountants doing this example.