Most people pay substantially less than their top marginal tax rates. For instance, a single person with $150,000 in income taking the standard deduction and 1 exemption pays 22.5% federal income tax, not counting FICA and medicare taxes. If you are married and filing separately that number jumps to 24.3% (about $2700 more for the privilege of being married, for those who like to complain the tax code favors married people.) So the high tax rates are really a disincentive to go out and earn more.
z | 04.05.08 - 10:44 am | #