4 ms·

> A 40% top federal bracket and a 10% top state bracket don't result in 50% of your actual income going to taxes. Our household is in the top 5% (not even top

> A 40% top federal bracket and a 10% top state bracket don't result in 50% of your actual income going to taxes. Our household is in the top 5% (not even top 1%) nationally, living in a medium-tax state, and we managed to max out the SALT deduction. Practically speaking, this means that for the portion of income taxed by state and local authorities resulting in taxes in excess of 10k, we are also (doubly) taxed by the federal government. It truly is (partially) additive.

triceratops 5y ago
> we managed to max out the SALT deduction We can all thank the Trump "tax cuts" for that. > It truly is (partially) additive. On that portion of your income. I reiterate what I said earlier. To have an actual effective 50% tax rate, you need to be earning well over $1m. That's not "easy" or a typical case.