SamuelRSmith on 16 December 2010
| RCTjunkie said: I want to be careful into organizing categories for percentages. For example, if I said 20% for less then 100K, and 30% for more then 100K, what would motivate someone to get a pay raise from 99,000 dollars to 105,000 dollars when in reality they'll lose money? Maybe just a flat dollar per dollar 23.436% tax rate. |
They don't lose money. When the tax rate goes up from 20% to 30% at the 100k mark, that means that each additional dollar that they earn above the 100k is taxed at 30%, the first 100k is still taxed at 20%.
