5th March 2009, 11:34 AM
Now THERE'S a big surprise. The whole thing's pretty confusing.
http://scienceblogs.com/goodmath/2009/03...horror.php
But this kinda irons it out for me. Currently everyone's terrified of a $250,000 dollar threshold at which point they'll get taxed high enough to take back less than if they made less. Well, everyone that makes that kind of scratch anyway.
Problem is, it appears our tax system doesn't tax the ENTIRE amount of your wages extra past that threshold, just the part of your income that actually goes OVER it gets taxed more. So in other words, it's impossible that someone making over it could ever take back less than if they made less money. It's still net profit.
So much for that scare tactic.
http://scienceblogs.com/goodmath/2009/03...horror.php
But this kinda irons it out for me. Currently everyone's terrified of a $250,000 dollar threshold at which point they'll get taxed high enough to take back less than if they made less. Well, everyone that makes that kind of scratch anyway.
Problem is, it appears our tax system doesn't tax the ENTIRE amount of your wages extra past that threshold, just the part of your income that actually goes OVER it gets taxed more. So in other words, it's impossible that someone making over it could ever take back less than if they made less money. It's still net profit.
So much for that scare tactic.
"On two occasions, I have been asked [by members of Parliament], 'Pray, Mr. Babbage, if you put into the machine wrong figures, will the right answers come out?' I am not able to rightly apprehend the kind of confusion of ideas that could provoke such a question." ~ Charles Babbage (1791-1871)