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quick question rephrased: Alice earns $250,001 and Bob earns $249,999 each before taxes. Who has more money after tax? If the increased tax rate is applied to
by beza1e1 18y ago
quick question rephrased:
Alice earns $250,001 and Bob earns $249,999 each before taxes. Who has more money after tax?
If the increased tax rate is applied to 100% of the income, then Bob gets more money than Alice and the system is stupid. Easier to calculate, but unfair.
Update: After reading the other link, i believe that the US tax system isn't stupid. Alice still has more money than Bob after taxes.
- DanielBMarkham 18y agoI do not believe the wisdom of the board is correct. I believe at the discontinuity Bob earns more. This seems in line with both the bracket system of progressive taxation and my experience with preparing taxes. But if somebody has a real, live explanation from an accountant, I'd love to see that link. Happy to be wrong. EDIT: Here's the link I was looking for. I stand corrected. http://www.fivecentnickel.com/2008/12/04/how-do-federal-income-tax-brackets-work/ http://www.fivecentnickel.com/2008/12/04/how-do-federal-inco...