3 ms·
Progressive tax brackets make raises sublinear. If the bracket thresholds raise with inflation, it evens out. I don’t think they have. Round number example: $1
by travisjungroth 4y ago
Progressive tax brackets make raises sublinear. If the bracket thresholds raise with inflation, it evens out. I don’t think they have.
Round number example: $150k gross, $100k net and $100k of expenses. Expenses go up to $108k. If your top marginal tax rate is 50%, you need a $16k raise to match it. 10.6% raise (not 16% though).
- zionic 4y agoBingo. Inflation is a stealth tax with regressive (socially) tax curves.