Over the weekend we had our taxes done, and near the end of our appointment, we asked, "So what is OUR tax rate?"
Vicki (our preparer) replied, "For the first $15,100 it's 10%, for the next $45,000 it's 15%, for the next..." I stopped her, "So if we're in the 25% tax bracket (determined by your taxable income,) not all our income is taxed at 25%?" "That's right," Vicki replied.
I had been under the impression that your ultimate tax rate was applied to all your income equally, but it turns out that everyone is taxed the same. So much for the right's rantings that the rich are overtaxed.
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