[FoRK] Megan McArdle advocates 376,537.65% marginal tax rate
Adam L Beberg
beberg at mithral.com
Thu Jan 21 12:05:36 PST 2010
Jeff Bone wrote on 1/21/2010 10:05 AM:
> Now you earn one more dollar. What happens? That whole $10K employer
> contribution becomes taxable and so you pay tax on it at 37.65% or
> $3,765. You made an extra buck and you paid $3,765 extra in taxes. Oh,
> yes, plus $0.3765. So you paid $3,765.3765 in taxes. Your marginal tax
> rate on that dollar: 376,537.65%.
The poor are no strangers to benefit "cliffs" if they make more money.
It's well known that unless you can make something like 40K as a family
of four, you're much better off making zero. We're always happy to pay
poor people to do nothing so long as they keep quit and away from the rich.
So putting a tax cliff up in rich-people land seems like fun :)
Adam L. Beberg
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