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Re: Tax rates Since 1913 

By: Down And Out Man in POPE | Recommend this post (2)
Thu, 19 Apr 12 8:10 PM | 358 view(s)
Boardmark this board | (The) Pope's for real stock market report 		Msg. 56395 of 65535
(This msg. is a reply to 56387 by killthecat)
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as I said: "I was in a 39% marginal bracket. Another eight plus for the state. And with social security tax, I kept 46 cents of every additional dollar I earned"

Note the phrase "of every ADDITIONAL dollar".

I had no bevy of tax deductions, just the personal exemption and the standard deduction. My taxable income had me in the marginal bracket I described. By definition, that means "if you earn an ADDITIONAL dollar, you pay that rate on it."

I made no claim about being taxed at 54% on everything. I was talking about what I'd have to pay on every additional dollar. Hence the description of my thought process on taking on extra work and stress for additional pay that I would only keep 46% of.

D&O


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The above is a reply to the following message:
Re: Tax rates Since 1913
By: killthecat in POPE
Thu, 19 Apr 12 7:05 PM 		Msg. 56387 of 65535

Hi D&O:

Thanks for your response. Not sure you are describing the real world in 1980. Aside from a bevy of tax deductions that reduced your taxable income, the 39% tax rate you mention only applied to the last few dollars, if any, of your taxable income. The bulk of your income was certainly taxed at a much lower rate. Check your actual return if you still have it on file.

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