2014-02-08

digitaldiscipline: (evilbaby)
But first, a C&P of a useful snippet from Forbes, because it already says what I was afraid I was going to have to:

Rate Single Filers Married Joint Filers Head of Household Filers
10% $0 to $8,925 $0 to $17,850 $0 to $12,750
15% $8,925 to $36,250 $17,850 to $72,500 $12,750 to $48,600
25% $36,250 to $87,850 $72,500 to $146,400 $48,600 to $125,450
28% $87,850 to $183,250 $146,400 to $223,050 $125,450 to $203,150
33% $183,250 to $398,350 $223,050 to $398,350 $203,150 to $398,350
35% $398,350 to $400,000 $398,350 to $450,000 $398,350 to $425,000
39.6% $400,000 and up $450,000 and up $425,000 and up

Keep in mind that the tax rates listed in these tables are marginal rates. That means that you do not owe your rate on all of your income. For example, if you['re] single [and] earn $100,000 per year, you would not owe 28% on all of your income — you would not owe $28,000 to the federal government. You would owe 10% of $8,925, 15% of $27,325 (the difference between the top and the threshold of the second tax bracket), 25% of $51,600, and 28% of $12,150 (the difference between your income and the threshold of the third tax bracket).



(emphasis added is mostly but not entirely mine)

Let me reiterate - there is absolutely no situation where earning an extra $1 will result in you getting a smaller paycheck. If you make a million dollars, your million-and-first dollar still gives you an extra 60.4 cents of take-home pay. Even if we were to reinstate the historically-high post-WWII marginal rates, that last-earned dollar would still result in the wage-earner taking home more money, though it would be 50, 40, 20, or even 10 cents of that dollar, depending on which historical tax rate we're invoking for the conversation.

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