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. |
You can tax for every dollar over a certain amount. So if you're being taxed 20% for less than 100k and then you earn 110k, only the 10k is taxed at the higher rate.