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Inability of online weirdos to understand marginal tax rates: example ++N. The California state income tax on a gross of $150k would be $10730, not $13950. Fur
by jeffbee 3y ago
Inability of online weirdos to understand marginal tax rates: example ++N.
The California state income tax on a gross of $150k would be $10730, not $13950. Furthermore, the deductions come off the top marginal rate, so if you are taking the standard deduction, maxing out your 401(k) contributions etc knock several thousand dollars off that figure.
- Covzire 3y agoFair enough but that calculus only gets better for moving the higher the salary is, $150k was just a starting point and I believe most experienced devs in the bay area make a lot more then that, are likely to have families in need of stable communities and their spouse's income might double the reason to move, if they have one.
- jeffbee 3y agoA 2-income family with 1-2 experienced devs working at major Bay Area companies could easily make over a million. But that only means they are rich as hell, it doesn't mean they are middle class. Median income in Santa Clara county is $140k so $150k was already a bit high as a starting point for middle class experience. I won't argue that California isn't squeezing out lower incomes. That much is clear. But you're overestimating what that income is. Lower income families leave California because of housing costs, not because of income taxes. The median California household owes < $1000/yr in state income taxes.