[FoRK] Megan McArdle advocates 376,537.65% marginal tax rate

David Kammeyer kammeyer at rocketmail.com
Thu Jan 21 12:10:35 PST 2010

This is borderline pedantry.  Of course, like every other tax deduction that has an income cap, there would be a phaseout so that earning more gross income doesn't cause your net income to go down.  

----- Original Message ----
> From: Jeff Bone <jbone at place.org>
> 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%.


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