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by ceejayoz
1183 days ago
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> California is easily close to that, when you add up Federal and State income taxes. As is New York. No, it's not. Someone making $250k in California pays an effective Federal rate of 22% and state of 8%. Even someone making a million a year sees an effective rate of ~42%. (And that's before tax avoidance strategies they'll undoubtedly pursue.) https://www.forbes.com/advisor/income-tax-calculator/califor... Same thing for New York; $100k income nets out at a 20% effective rate. https://www.forbes.com/advisor/income-tax-calculator/new-yor... (And these are single-filers. If you've got a family, it dips substantially further.) > Just look at the continued campaign to remove the $10,000 limit on State and Local Taxes. Where's that coming from? The $10k limit isn't a limit on taxes, it's on how much state/local tax paid you can deduct, set in 2017 as a way to punish high-tax blue states. https://en.wikipedia.org/wiki/Tax_Cuts_and_Jobs_Act_of_2017 |
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Pedantic. Obviously that's what I meant (and knew)
Learn about marginal tax rates. See, Forbes even tells you: "your marginal tax rate is 35%"
22% is the average tax rate. It's the *marginal" tax rate we're concerned with for deductions.