Re:Killing TurboTax
by gamblor956 on Wednesday March 03, 2021 @08:27PM
(#26337424)
It would be $10.90.
$10 for the first bracket. The remaining untaxed income is $1, taxed at 90% = $0.90 tax.
But the Republican Party has spent a lot of money to make people think that the tax would be $90.90 (i.e,. a flat rate), which is why so many people are opposed to increasing the tax bracket rates...even though the actual affect is marginal to most people (even those affected).
The smartest person I know, idolized him since I was a kid, had that same misconception last year when we were discussing top end tax brackets.
I feel like every April news orgs should just run segments with accountants doing this example.
Wait, can you explain how tax brackets work because I think there may be a fundamental misunderstanding here.
If we have two brackets, 10% for <=$100 and 90% for >$100, what do you think the tax bill would be for someone who earned $101?