Taxes are the Same for Everyone: Marginal Rates vs. Millionaires and Billionaires

I was watching some of the coverage of the ongoing fiscal cliff mess and I heard one of the people being interviewed talking about how the “Bush tax cuts” are going to be extended for 98% of Americans. This. Is. So. Wrong. I’d like to assume that the people on TV informing the nation know that they’re wrong or that they’re misleading, but I don’t know — maybe they don’t know. Regardless, they’re unintentionally perpetuating myths that have long since been debunked.

To flesh this out: it’s not that once you make a certain amount of income, your rate is completely different for all the money you make, NO! The USA has marginal tax rates, so the first $250,000 you make will get taxed at one rate and any money you make above that gets taxed at a different rate. So, when pundits or talking heads or anyone talking about this fiscal cliff mess tells you that the Bush tax cuts are being extended for 98% of Americans (or any number less than 100%) — they’re wrong.

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2 responses to “Taxes are the Same for Everyone: Marginal Rates vs. Millionaires and Billionaires

  1. Pingback: The Fiscal Financial Cliff Was Created To Protect Millionaires And Billionaires This Was A Win Win For The 1% | Democracy Under Attack By Zillionaires

  2. Pingback: France’s 75% Tax on Millionaires is Not What You Think | Jeremiah Stanghini

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