So, if I get paid $30,000, I pay $300 in taxes. When I get a tiny little raise, and now make $30,100, I pay $1,505, so now my $100 raise makes me lose $1,205. It will take me 12 years at that rate to start bringing home any more money.
Years later I’ve been getting these little raises,and a few big ones, and now I’m making $100,000. So, I’m paying $5,000 per year. The next little raise takes me to $100,500, and I suddenly get to pay $10,500 per year, so for my $500 raise, I loose $5,500. At that rate of raises, it takes me 11 years to start making any more money.
I don’t know. Seems like there’s a better way to do it.
(Full disclosure - I’m anti Income Tax, because it’s too intrusive and gives the government too much information about us and too much power over us).
Who gets a $100 raise? Let’s be serious.
Compare that to what you are paying now.
Seems to me it has to be the same as current progressive rate calculations. You are taxes 1% on the first 30000. 5% on the next 70000 and so on. Seems like that would need to be consistent with his plan for the very reason you mention.
I would think you pay 1% on the first 30k and 5% on the amount over 30k, etc.
“Years later I’ve been getting these little raises,and a few big ones, and now I’m making $100,000. So, I’m paying $5,000 per year”
The last time I made $100,000 I paid $22,000 in income tax. Trump’s plan seems good.
They are tax brackets. So you would pay $300 on the first $30000 and 5% on the amount over $30000. And so on.
ROTFL at you balking at paying 5% because of a small raise. How much you paying in income tax today? Give me a break.
I assume it will work like the current system. The tax on the first $30,000 will always be 1% no matter how high your income goes. Same for the income brackets.
No different than now.
Likely you would pay 5% on the first $100,000 and 15% on the income over that. Similar to the tax code now.
But, IMO the 5% 30k-100k , the bulk of taxpayers would not collect enough money. Everyone should be paying something.