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View Diary: Private enterprise shackled by Obamunism, aka Dow hits 15,000 for first time (153 comments)

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  •  of course there is (0+ / 0-)

    say i made 40K.  i could put about 1200 in retirement account lowering me to the 15% bracket because my taxable income was now under 35K.

    my take home pay is actually about the same.

    -You want to change the system, run for office.

    by Deep Texan on Fri May 03, 2013 at 09:24:09 AM PDT

    [ Parent ]

    •  You don't understand marginal tax rates (1+ / 0-)
      Recommended by:
      bryduck

      You seem to think that your entire $40k in income is taxed at 25%, and then if you save enough to get your income below $35k, it's all taxed at 15%.

      That's not how it works.

      •  that's not what i said either (0+ / 0-)

        i know how marginal tax rates work.  what i am saying is there is a sweet spot between retirement account contributions, taxable income and your take home pay.

        it exists for most people but it may not seem like much.

        over time though, that retirement account will grow and is much better than no retirement account.

        -You want to change the system, run for office.

        by Deep Texan on Fri May 03, 2013 at 09:44:05 AM PDT

        [ Parent ]

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