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Typically with a higher income you taxation rate increases even more. So 50% more salary might only end up being 20% more in your hand.

• throwaway2037 2y ago
  > So 50% more salary might only end up being 20% more in your hand. Can you give an example of a tax regime where this would hold true? I find your example hard to believe.
  • ruszki 2y ago
    https://en.m.wikipedia.org/wiki/Progressive_tax https://en.m.wikipedia.org/wiki/Progressive_tax
    • consteval 2y ago
      Even under a progressive tax things don't work the way conservative fiscal armchair economists would like to have you believe. Poor people still, comparatively, spend more of their income to taxes. That's because poor people have to spend more of their income on direct consumption, i.e. not investment. If I'm poor I'm easily spending 90% of all my money on stuff for me, right now. If I'm rich that drops to 10%, and the rest goes towards stuff that isn't taxed. So, while income tax may favor the poor, sales tax very obviously favors the rich. The only reason a progressive tax exists is because rich people are so powerfully favored in modern tax systems, we need to try to bring them back in line to the burden poorer people face. Even still, poor people face more burden.
  • seafoam 2y ago
    http://gregmankiw.blogspot.com/2008/10/blog-post.html http://gregmankiw.blogspot.com/2008/10/blog-post.html