Timeline for Why isn’t the tax system continuous rather than bracketed?
Current License: CC BY-SA 4.0
12 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Dec 17, 2023 at 20:07 | history | edited | Aasmund Eldhuset | CC BY-SA 4.0 |
added 249 characters in body
|
| Jun 30, 2019 at 17:07 | comment | added | Eric Buess | Great graphs and answer! Well done! I’ve updated the question to clarify some of the misunderstandings I caused by using the incentive verbiage. | |
| Jun 28, 2019 at 2:33 | comment | added | Aasmund Eldhuset | @CramerTV: Thanks! Good idea, although the graph would look a bit boring if we extend it all the way to $10M - the tax percentage is pretty flat already at half a million, so I stopped there. | |
| Jun 28, 2019 at 2:30 | history | edited | Aasmund Eldhuset | CC BY-SA 4.0 |
added 1045 characters in body
|
| Jun 25, 2019 at 22:10 | comment | added | Aasmund Eldhuset | @Trilarion: In practice, of course, the tax that is withheld from every paycheck is based not on how much you've earned so far this year (in which case you'd get less and less on every paycheck), but on an estimation of how much you're going to earn. But the end result is the same: If you earn $9,700 one year, your tax will be $970 (10%), and if you earn $9,701 the next year, your tax will be $970.12 (10% of $9,700 plus 12% of $1). | |
| Jun 25, 2019 at 22:05 | comment | added | Aasmund Eldhuset | @Trilarion: The discontinuities are in the marginal tax rate. Up to $9,700, every dollar you earn will be taxed at 10%. If you have earned $9,700 so far and then earn one dollar more, that dollar will be taxed at 12%, but the first $9,700 will still be taxed at 10%. So the only thing that jumped was the tax rate on the money you earn on top of what you earned in the lower bracket(s)_. | |
| Jun 25, 2019 at 19:42 | comment | added | NoDataDumpNoContribution | I thought in the US you actually have discontinuities. | |
| Jun 25, 2019 at 1:00 | comment | added | CramerTV | Nice answer. Could you add one graph using actual 2019 rates on taxable income up to $10M? Another nice addition would be to have a second y axis showing realized tax rate (as you noted at 32% in the paragraph after the second to last graph.) | |
| Jun 24, 2019 at 19:01 | history | edited | Aasmund Eldhuset | CC BY-SA 4.0 |
added 1888 characters in body
|
| Jun 23, 2019 at 20:11 | history | edited | Aasmund Eldhuset | CC BY-SA 4.0 |
added 16 characters in body
|
| Jun 23, 2019 at 20:05 | review | First posts | |||
| Jun 23, 2019 at 20:25 | |||||
| Jun 23, 2019 at 20:02 | history | answered | Aasmund Eldhuset | CC BY-SA 4.0 |