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View Diary: The Progressive Alternative (75 comments)

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  •  I could be wrong... (10+ / 0-)

    Actually, there's a fairly high likelihood of that, because honestly, I rely on DKos quite a bit for my understanding of our tax system.

    Regardless, I was under the impression that that would not be the case. (For simplicity's sake, I'm going to not adjust for inflation.) My understanding that the nature of progressive tax brackets is that if you made $250,000 (and you were the sole breadwinner, since the chart on the left is for married but jointly filing), only the amount of income from $234,645 to $250,000 -- so $15,355 -- would be taxable at 50%. So you'd only pay half of that, or $7,677.50, at a 50% rate.

    The money you'd make up to that point would be taxed at the respective lower brackets. So your total taxes paid would be it:

    0.20(29,331 - 0) + .22(58,661 - 29,331) + .26(87,992 - 58,661) + .30(117,323 - 87,992) + .34(146,653 - 117,323) + .38(175,984 - 146,653) + .43(205,315 - 175,984) + .47(234,645 - 205,315) + .50(250,000 - 234,645)

    = .20(29,331) + .22(29,330) + .26(29,331) + .30(29,331) + .34(29,330) + .38(29,331) + .43(29,331) + .47(29,330) + .50(15,355)

    = 5,866.20 + 6,452.60 + 7,626.06 + 8,799.30 + 9,972.20 + 11,145.78 + 12,612.33 + 13,785.10 + 7,677.50

    = 83,937.07

    So if you were the sole breadwinner in a jointly filing married couple in 1963 who made exactly $250,000, you would pay $83,937.07 in taxes, leaving you with a net after tax income of $166,062.93.

    If I did anything wrong or don't understand something about our tax system, PLEASE CORRECT ME!

    But this is what I think the answer to your question is.

    "My great panacea for making society at once better and more enjoyable would be to cultivate greater sincerity." -- Frances Power Cobbe

    by Panacea Paola on Wed Apr 25, 2012 at 01:44:55 PM PDT

    [ Parent ]

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