2012-01-24, 04:56 PM
Stereo Wrote:Tax tiers don't work like that, net income follows a piecewise curve that's always increasing, just not continuous. If your base income is $150,000 you will take a net of more than someone earning $100,000 - why? Because for the first $100,000 you earn, you pay the exact same amount of income tax as them. Then you get your 60-70% of the other $50,000, ending up still maybe $30,000 ahead.
Deductions can put specific cases out of order, depending which you grab, but the general trend will still be that earning more means you get more.
Of course, with rich people such as Romney paying less than 15% income tax, there's obviously an extent to which the ultra-rich pay less tax than the middle class. But straightening that out is pretty tough for the Senators, when half of them are using those same loopholes...
I know how taxes work, I do work at a tax office lol, but your last paragraph is all I was trying to make clear. They give pretty generous deductions for people with low income, and raise the taxes on the middle class, while the same generosity applies to, for example, oil companies. My example was pretty much an asspull, I'm aware of it lol

