Skip to main content

View Diary: Do YOU understand how tax brackets work??? (124 comments)

Comment Preferences

  •  Always amazed (20+ / 0-)

    I am always amazed at the number of people that do not understand how the basic tax table works in this country.  I have had fairly intelligent colleagues say some really dumb things similar to what you just wrote about.  I have had to explain more than once that just because you are in the 25% tax bracket it doesn't mean your whole income is taxed at a flat 25%.  The actual rate is considerably lower because of the tax bracket steps by income.  I wish high school economics teachers covered this better.  In high school I had to learn how to fill out 1040, 1040 A, and 1040EZ forms in my econ class.  Didn't anyone else have to do this?  As a teenager I used to do my mom's taxes.

    "When a nation goes down, or a society perishes, one condition may always be found; they forgot where they came from. They lost sight of what had brought them along." --Carl Sandburg

    by Mote Dai on Mon Nov 19, 2012 at 05:22:52 PM PST

    •  Wow,really? (8+ / 0-)

      How cool is that.  My dad went over his taxes with me, and had me go over a home purchase contract, but not in school.

      •  well done! (4+ / 0-)
        Recommended by:
        askyron, WisVoter, TrueBlueMajority, fumie

        We also had a special speaker come to talk to the students about credit cards, charge cards (like the original American Express), and checking accounts worked and how they differed.  I think many people would benefit from that lesson too!

        "When a nation goes down, or a society perishes, one condition may always be found; they forgot where they came from. They lost sight of what had brought them along." --Carl Sandburg

        by Mote Dai on Mon Nov 19, 2012 at 06:11:05 PM PST

        [ Parent ]

    •  in school? (3+ / 0-)
      Recommended by:
      Mote Dai, 4mygirls, fumie

      wow. that's pretty cool.

      I file my own taxes and have every year I've worked. But I taught myself, never was taught in school.

      pseudoscience can kill

      by terrypinder on Mon Nov 19, 2012 at 06:46:49 PM PST

      [ Parent ]

      •  The final was preparing taxes (4+ / 0-)
        Recommended by:
        annan, True North, fumie, not a cent

        As part of the final for the class, we were given sets of paperwork to complete the appropriate tax forms.  It was an interesting test.  It wasn't horribly complicated examples but still very enlightening.

        "When a nation goes down, or a society perishes, one condition may always be found; they forgot where they came from. They lost sight of what had brought them along." --Carl Sandburg

        by Mote Dai on Mon Nov 19, 2012 at 07:48:51 PM PST

        [ Parent ]

    •  Always amazed (0+ / 0-)

      I was a Business Economist and Tax Expert and worked in the field for 27 years. I, as well, was always amazed that the majority don't really understand what "Graduated rates" mean. I was always willing the explain the different tax brackets and review the tables with them personally but some never got it.

      What really concerns me is that the idea of "graduated taxes" is intentionally misconstrued by Conservatives and often lied about in their representations to the public.  

      For example, I move from California 12 years ago to Illinois. California has a graduated tax system and the top bracket is at one of the highest rates in the Country. Illinois has a "flat tax" mandated by the state constitution that would require an amendment to change it.  Everytime the question comes up for change the conservatives run around saying how much worse a graduated tax would be!! However, I paid more in Illinois state tax as a tax consultant than I did in California. What they fail to understand (no I believe they do understand) is that the higher rates only impact those with higher incomes.

      Unfortunately conservatives have all of the lower income individuals convinced in this state that their liability would be higher with graduated rates. Actually the opposite is the case.  As a side note..I worked with every state...States with graduated rate structures tend to raise more revenue and have healthier state revenues as a result.  The USA would be no different. The graduated rates are reasonably fair..but those with extreme wealth can afford to pay more without it adversely impacting their lifestyles.

Subscribe or Donate to support Daily Kos.

  • Recommended (159)
  • Community (65)
  • Baltimore (41)
  • Civil Rights (39)
  • Bernie Sanders (33)
  • Culture (32)
  • Elections (30)
  • Economy (30)
  • Law (26)
  • Texas (24)
  • Labor (22)
  • Environment (21)
  • 2016 (21)
  • Rescued (21)
  • Education (21)
  • Freddie Gray (20)
  • Media (19)
  • Racism (18)
  • Hillary Clinton (18)
  • Health Care (17)
  • Click here for the mobile view of the site