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Re: 116th Congress: Episode 1 - Trial by Fire
Yes it is quite clear that he has never taken an Econ class (or never passed one) because that is hilariously stupid. Hell even some of the Faux crowd know that isnt how marginal taxes work. Hell anyone who makes above the first tax bracket and does their own taxes can tell you how it works...
Hey 5mn,
Take a break from dodging bullets on 394 and understand that the person who makes 400K is not going to be taxed on 90% of all of it. There are various tax brackets and the rates for each bracket ONLY APPLY TO THE MONEY EARNED IN THAT BRACKET! So if, for example, one of the brackets starts at say 75k and then the next one starts at 135K and the rate is 32% up until 135K then that rate will be used ONLY on the dollars earned between 75-135. Anything lower will be taxed at the various brackets.
So in your 400K scenario, only the very top of the salary will be hit at 90%. They will not have a take home of 40K that is just stupid and wrong. Hell, if they kept the current tax brackets NONE of the 400K would even be taxed at 90%. The current tax brackets:
10% - 0-$9525
12% - $9,526-$38,700
22% - %38,701-$82,500
24% - $82,501-$157,500
32% - $157,501-$200,000
35% - $200,001-$500,000
37% - %500,001 and up
So lets say someone made 400K with these numbers. They arent paying 35% on the whole thing. They pay 35% on every dollar earned between $200,001 and $500,000. So they would pay 35% on roughly $200,000. (70K) They would be pay 32% on all the dollars in the previous bracket ($42,499) which would be $13,599.68. So on and so forth into each bracket. Even if the Top Marginal Rate was lowered to include 400K only a portion of that money would be taxed at said rate.
So basically your entire understanding of this is wrong so sit back and learn a bit...
Originally posted by BassAle
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Hey 5mn,
Take a break from dodging bullets on 394 and understand that the person who makes 400K is not going to be taxed on 90% of all of it. There are various tax brackets and the rates for each bracket ONLY APPLY TO THE MONEY EARNED IN THAT BRACKET! So if, for example, one of the brackets starts at say 75k and then the next one starts at 135K and the rate is 32% up until 135K then that rate will be used ONLY on the dollars earned between 75-135. Anything lower will be taxed at the various brackets.
So in your 400K scenario, only the very top of the salary will be hit at 90%. They will not have a take home of 40K that is just stupid and wrong. Hell, if they kept the current tax brackets NONE of the 400K would even be taxed at 90%. The current tax brackets:
10% - 0-$9525
12% - $9,526-$38,700
22% - %38,701-$82,500
24% - $82,501-$157,500
32% - $157,501-$200,000
35% - $200,001-$500,000
37% - %500,001 and up
So lets say someone made 400K with these numbers. They arent paying 35% on the whole thing. They pay 35% on every dollar earned between $200,001 and $500,000. So they would pay 35% on roughly $200,000. (70K) They would be pay 32% on all the dollars in the previous bracket ($42,499) which would be $13,599.68. So on and so forth into each bracket. Even if the Top Marginal Rate was lowered to include 400K only a portion of that money would be taxed at said rate.
So basically your entire understanding of this is wrong so sit back and learn a bit...
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