Governor Taxed Rich Increased the Minimum Wage -- State's Economy Is One of the Best

originally posted by: BuzzyWigs
a reply to: Edumakated

My research is Already Done.
You are wrong.

Sorry to rain on your parade, but you are wrong. The number you should be looking at is the "Effective tax rate".

The very wealthy should be taxed significantly, if their money is not invested towatds buisnesses. Granted that needs to happen on a nationwide if not global scale, because not every state is host to one of the one percent and they could just switch state or country if faced with a heavy tax burden.

originally posted by: Merinda
The very wealthy should be taxed significantly, if their money is not invested towatds buisnesses. Granted that needs to happen on a nationwide if not global scale, because not every state is host to one of the one percent and they could just switch state or country if faced with a heavy tax burden.

That would take massive authority.

Millions would have to be killed to enforce this idea.

originally posted by: onequestion
a reply to: OccamsRazor04

Its still a higher tax bracket what are you talking about?

Perhaps this explanation is needed - taxes are marginal. The 2014 income tax brackets are 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%.

Suppose you file as single and made $9,075 working odd jobs, the threshold for 10% taxation.
You owe $907.50, effectively 10% before any deductions.
Suppose you get a job, and make $36,900, the threshold for 15% taxation.
You owe $907.50 + $4,173.75 = $5,081.25, effectively 13.77% (NOT $5,535) before any deductions.
Suppose you get an better job, and make $89,350, the threshold for 25% taxation.
You owe $5,081.25 + $13,112.50 = $18,193.75, effectively 20.36% (NOT $22,337.50) before any deductions.
Suppose you get an even better paying job, and make $186,350, the threshold for 28% taxation.
You owe $18,193.75 + $27,160 = $45,353.75, effectively 24.34% (NOT $52,178) before any deductions.
Suppose you invent some new toilet paper holder, and make $405,100, the threshold for 33% taxation.
You owe $45,353.75 + $72,187.50 = $117,541.25, effectively 29% (NOT $133,683) before any deductions.

To make a long explanation short, marginal tax rates apply only to the income within that bracket. If you made $9,076 (threshold + $1), you would be taxed $907.50 ($9,075 at 10%) + $0.15 ($1 at 15%).