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by Afforess
4866 days ago
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This is correct, and worth pointing out, because the OP has this line: >So now you owe an extra 10% on your $40K salary which is $4K. And you also owe 35% on that $50k which is around $18K. Which is false. The extra 50k is taxed more than your first 40k. Your overall effective tax rate increases, but it's incremental. Your first 40k is taxed the same with or without the extra 50k, but the extra 50k is taxed at a higher rate because it's in a higher marginal rate. |
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