Kasz216 on 18 June 2012
| cloud1161 said: I never understood how the tax brackets worked. There should just be a flat rate, that way no one can whine about it being unfair. |
Tax brackets are easy. It's just the deductions that are hard.
I mean, say you make 300 with a 5, 10 and 20 % Tax rate and the thresholds are 100-200-higher.
You would pay 5% on your first $100. So $5.
Then on your second hundred you would pay 10%, so from 100 to 200 $10.
From 200 to 300 you would pay $20.
So tota l you'd pay 35 bucks on your $300 tax and would be in the 20% bracket... though in reality your effective tax rate is 11.6%
