Tax brackets made easy (not representative of current tax brackets.
Let's say the tax rate for income up to 100,000 is 15%, The rate for 100,001-400,000 is 25% and 400,001+ is 40%
Let's also suppose you make 500,000/year exactly.
You take 15% of your first 100,000, which is 15,000. You also take 25% of the money from 100,001-400,000 which would be 75,000. Last, you take 40% of the 400,001 to 500,000, which would be 40,000. 15,000+75,000+40,000=130,000 dollars you pay out of 500,000, leaving you with a net 370,000.00. 130,000/500,000 is equal to a 26% tax rate.
NJTNG87 on October 23rd, 2020 at 21:29 UTC »
can someone please, please explain to me why morons who make a fraction of $400k a year and don't have a pot to piss in are mad?
Naes422 on October 23rd, 2020 at 22:31 UTC »
Tax brackets made easy (not representative of current tax brackets.
Let's say the tax rate for income up to 100,000 is 15%, The rate for 100,001-400,000 is 25% and 400,001+ is 40%
Let's also suppose you make 500,000/year exactly.
You take 15% of your first 100,000, which is 15,000. You also take 25% of the money from 100,001-400,000 which would be 75,000. Last, you take 40% of the 400,001 to 500,000, which would be 40,000. 15,000+75,000+40,000=130,000 dollars you pay out of 500,000, leaving you with a net 370,000.00. 130,000/500,000 is equal to a 26% tax rate.
hirtiusrufus on October 23rd, 2020 at 23:13 UTC »
Jokes on you. I know how marginal tax brackets work and I still won’t make more 400k a year.