M.U.G.E.N said:
I am an accounting major...and the stuff you just said are overly simplified at best. This is not a black and white situation. The requirements/conditions/criteria vary a lot going by federal, state and also are affected by various points put forth by US GAAP and will affect the amount they can use as an itemized deduction. There is no such thing as a flat tax rate at a federal level and even at a state level less than 10 states use it. I think you are misusing the term here out of ignorance. Loss/Gain/Tax Credit carry forward and backward, I know these things, and I know them much better than you and don't even kid yourself thinking otherwise. I definitely know how progressive taxation works (yes that's the actual term). Next time, if there's reason to believe the guy knows what he is talking about and you find a statement he made to be wrong or odd, give the benefit of the doubt to him and ask him to clarify without being condescending. You did HR or something right? Apply things you learned in it if so. Anywho I won't bother with this topic any furthure, heck I shouldn't have had to even post this. anyways think what you must |
If you know how it works... why did you mess it up how the tax system works so horribly.
It's hard to believe you are an accounting major but can't properly explain how basic taxation works.
Your example was horribly wrong... and it's a sore point because I'm sick of people talking about "dodging tax brackets" as if the highest bracket is all you pay on all your income.
If you want to explain a reason why you incorrectly explained how taxes work, i'm all ears... but the point is... you misrepresented how taxes work... as anyone who's even looked at looking at doing their own taxes could tell you. It doesn't take an expert to tell when someones misrepresenting the very basics.
Also The federal corproate tax rate is set up, so that once you hit an exact point, your paying an exact flat 35% tax on all income. That's why i said "once you hit 335,000."
It averages out at 35% at 335,000 made... and after that, the tax rate paid is 35%. Because the tax rate actually goes down from 39 to 35.
So yeah... once you hit 335,000 the rate is flat to where you pay a 35% effective tax rate on all taxable income. (effective rates of course being much lower when accounting all income.)
