taxation

[Clodfobble]

Originally Posted by DanaC

Isnt that how the tax system currently works?

Not the American one, at least. In the American system, the end-count of your income determines which percentage bracket you're in, and that percentage applies to all of the dollars. So in a pure count with no other factors, a person making $99,900 a year would indeed take home more than the person making $100,000.

But of course there are tons and tons of deductions, which lower the end-count of what counts as your "income," and there are credits, where the government just gives you a certain amount back regardless of what percentage you are at, or whether you even owe that much in taxes in the first place, and there are deferred taxes, and certain types of money taxed at special rates, etc., etc....