General Discussion
In reply to the discussion: $20,833.00 per month???? [View all]Honeycombe8
(37,648 posts)but we get taxed a certain rate, if we fall within a certain income range.
If I fall in the 25% bracket, I pay 25%. Period. Makes no difference to me HOW they arrived at the 25% figure. What matters is the rate of 25%.
So if tax rates are to revert back to the levels (for the wealthy) of pre-Bush tax cuts, they will not apply only to income over the old rates. That is not a return to the pre-Bush tax cut rates at all. It is a lower rate than that, only not as low as the current rate.
So if someone with an income of $1,000,000 is to have a 39% tax rate...in order to have that tax rate, the 39% has to apply to the entire $1M. If it applies ONLY to a portion of the $1M, then the rate is less than 39%.
I see this as a trick to the public, who will be told, and who will THINK, the $1M guy has a rate of 39%, but his rate will really be, say, 37%.