Replies

Family brings home precisely $100K. Tax bill = $10K; they keep $90K. Family brings home $100,001. Tax bill = $25,000.25; they keep $74,999.75.

I agree it came out confusing on the show... but reading the details on Fred's site, it's a two-tier progressive income tax -- the family in the scenario is taxed 10% on the first $100k (after standard deductions/exemptions), and then 25% on everything over that. It's not 25% on everything if they make over the threshold, it's just 25% on everything over the threshold.

36 posted on 12/11/2007 11:36:07 AM PST by kevkrom ("Should government be doing this? And if so, then at what level of government?" - FDT)

43 posted on 12/11/2007 11:46:04 AM PST by SJackson (we're gonna change the rules and have voting only on the Internet, then we're gonna win!, Ron Paul)