Marginal Tax Rates And The Perpetually Stupid
Hello, President Obama! I am some sort of confounding idiot, and I need you to explain some stuff to me that I should have learned when I was a teenager? Welcome once again to the world of dumb and/or dishonest, who totally don’t understand marginal tax rates/want to get other people to believe stupid things about them. This happens often enough. So much so that I have Dean Baker’s “Marginal Tax Rates For Complete Gits” bookmarked:
No, no and 286,000 times no! The tax system brackets give marginal rates. This means that if the raise bumps you into a higher bracket then you pay more taxes only on the income in the higher bracket. Suppose that the tax bracket for income under $200k is 25 percent, and for income over $200k is 33 percent. If you get a raise that pushes your income from $195,000 to $205,000 then you only pay the higher 33 percent tax rate on the $5,000 that is above the $200k threshold not your whole income. Therefore, there is no (as in none, nada, not any) way that getting more money, and being pushed into a higher tax bracket will leave you with less money after taxes.
This is actually pretty important, because once you have an outbreak of stupid, it can spread, and there are real world consequences.
Ha ha, David Kramer and his friend are dumbasses. The good news, however, is that the odds that the MORE MONEY this guy’s friend turned down, because of TEH ASS-UH-NINES, went to somebody else who wasn’t an idiot. That’s good, because wealth really should accrue to people who demonstrate some baseline merit.