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As a person with a basic understanding of taxes and their methods, I think the meaning was clear. Stop nitpicking.
by gsibble 14y ago
As a person with a basic understanding of taxes and their methods, I think the meaning was clear. Stop nitpicking.
- DougBTX 14y agoIn the paragraph below, it says that "A person earning the average tech salart in Silicon Valley would save $42,919 in just five years living in a state like Florida where there is no income tax." The median salary from the chart is $90,000, so I suspect the calculation they did was along the lines of 90000 * 9.3/100 * 5 = $41,850. (Perhaps they used a different average than the chart.) So, I don't think they know how marginal tax works either.
- forrestthewoods 14y agoActual taxes paid would be $29,866 for single filers. Effective tax rate at 90k works out to 6.64%. https://www.ftb.ca.gov/forms/2012_California_Tax_Rates_and_Exemptions.shtml https://www.ftb.ca.gov/forms/2012_California_Tax_Rates_and_E...
- subsystem 14y agoIt's valid criticism. The marginal tax rate doesn't say anything more than what the marginal tax rate is and should be indicated as such. A better way to describe thing is taxes paid at median industry salary + marginal tax rate. Imagine if this was applied to fuel economy. "For any mph over 60 mph the car will increase it's consumption by X percent". Totally useless.
- rprasad 14y agoThe difference between marginal tax rates and effective tax rates is the difference between night and day. After all, on a marginal-rate basis, the U.S. has the highest corporate income tax rate in the world. On an effective-rate basis, the U.S. is competitive with nations which do not have a corporate income tax rate. Many large U.S. corporations have effective rates in the low single digits and in some cases have negative effective rates.