• jj4211@lemmy.world
    link
    fedilink
    arrow-up
    3
    arrow-down
    1
    ·
    edit-2
    1 day ago

    But your tax bill doesn’t go up 5%.

    Ok, let’s get this close to real numbers. The cited tax brackets don’t exist, so I’ll go with the 24% to 32%. So if your earnings are 1 dollar into the 32% tax bracket, you are going from AGI $191,950 to $191,951. Your tax bill at $191,950 would be:

    $11,600 * 0.10 +
    $35,550 * 0.12 +
    $53,375 * 0.22 +
    $91,425 * 0.24 
    ---------------------------------
    $39,110.74
    

    And your tax bill at $191,951 would be:

    $11,600 * 0.10 +
    $35,550 * 0.12 +
    $53,375 * 0.22 +
    $91,425 * 0.24 +
    $1 * 0.32
    --------------------------------------
    $39,111.06
    

    Your tax bill goes up by a whopping $0.32 or 0.01% by earning that extra dollar, meaning you still got to keep $0.68 of that dollar. When they say that dollar would cause their tax bill to go up a lot, that’s pretty much exclusively owing to the misconception that people assume their tax bill would have gone to $61,424, so in the misconception that dollar would have cost them $22,313.

    • tias@discuss.tchncs.de
      link
      fedilink
      arrow-up
      1
      arrow-down
      1
      ·
      15 hours ago

      Please, you’re wasting your time explaining. I know all this. I’m talking about how a libertarian would interpret the question due to its ambiguous phrasing. My only point is that of the original parent comment: the methodology of the researcher is bad.