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View Diary: The White House Shows its Hand and the Republicans Fold (195 comments)

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  •  A good previous diary that discusses this point. (8+ / 0-)

    I remembered (and found via the excellent search facility here at DKos) a previous diary by Jed Lewison that illustrates this confusion/ignorance regarding marginal tax rates that some real people have: "Prospect of earning more than $250,000 terrifies business owner, because Obama"

    Basically, in that diary a chiropractor and her husband were afraid that they would actually end up with less cash in hand after taxes if they earned more than $250,000 than if they kept their income below $250,000. The way marginal tax rates work is that you will always have more money after taxes the more money you earn, even if you cross over into a higher marginal tax bracket (although it may not be as much as you would have liked, which always seems to be the case for the 2%). That is if you earned $251,000 (or higher) you will always have more net after-tax cash in hand (even at the higher marginal rate imposed above $250,000) than if you earned $249,000 (or less). The only case where that would not be true is if the marginal rate were 100% which nobody is even close to proposing.

    These are troubling times. Corporations are treated like people. People are treated like things. ... If we ever needed to vote we sure do need to vote now. — Rev. Dr. William Barber, II to the NAACP, July 11, 2012

    by dewtx on Wed Dec 12, 2012 at 09:38:17 PM PST

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