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Response to Swede Atlanta (Reply #20)

Sat Nov 10, 2012, 10:44 AM

25. I think this is how it works

When you go to the tax table after you have determined your taxable income the table is taking into account the different rates to tax the different levels of your income.
Say your taxable income is $80,000
the first 8,700 is taxed at 10%
the next chunk of income up to 35,350 is taxed at 15%
from 35,350 - 85,650 is taxed at 25%
and so on

So - it isn't that your entire 80,000 income is taxed at the highest rate of 30% because if it was the instructions would just say "find 30% of 80,000...that is your tax" (of course they probably can't count on Americans being able to find a percent). Instead they have those crazy tables that have these layered percentages built into the tables - you know they really couldn't count on us to find the various percentages and add them together.

Looks like they hope to decrease those rates on all of the income levels up to 250,000 (so everyone (even wealthy) gets those cuts) and raise the rate at above 250,000 - so only those making above 250,000 (after write-offs and deductions) will see an increase, and only on the chunk of their income that is above 250,000.

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Replies to this discussion thread
Arrow 28 replies Author Time Post
corkhead Nov 2012 OP
KarenS Nov 2012 #1
yends21012 Nov 2012 #6
Angry Dragon Nov 2012 #2
Sinistrous Nov 2012 #3
TahitiNut Nov 2012 #15
KansDem Nov 2012 #4
Skidmore Nov 2012 #5
ret5hd Nov 2012 #7
OneGrassRoot Nov 2012 #10
TahitiNut Nov 2012 #13
ProudProgressiveNow Nov 2012 #16
kelliekat44 Nov 2012 #8
dixiegrrrrl Nov 2012 #9
TahitiNut Nov 2012 #11
Honeycombe8 Nov 2012 #12
geckosfeet Nov 2012 #14
femrap Nov 2012 #27
momsrule Nov 2012 #17
12AngryBorneoWildmen Nov 2012 #18
rhett o rick Nov 2012 #19
Swede Atlanta Nov 2012 #20
Egalitarian Thug Nov 2012 #23
LineLineNew Reply I think this is how it works
jenlucu Nov 2012 #25
Zax2me Nov 2012 #21
Barack_America Nov 2012 #26
Egalitarian Thug Nov 2012 #22
Thor_MN Nov 2012 #24
RepublicansRZombies Nov 2012 #28
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