When the going gets weird, the weird turn pro. - Hunter S. Thompson

Showing posts with label marginal taxation. Show all posts
Showing posts with label marginal taxation. Show all posts

08 March 2009

Not afraid to be educational

Carrie explains marginal tax rates and information visualization in the same post:
This does not mean that if you bring in more than $372,951, every single dollar in your entire pile of money is taxed at 35%. Only Dollar #372,952 (plus whatever additional money you may earn) is taxed at that rate. Dollar #372,950 is taxed at 33%. Meanwhile, Dollar #1 is taxed at 10%. Hence the term "marginal": In a progressive tax system, there are margins (i.e., boundary lines) at which the government increases the tax rate on any additional incoming dollar.

So I concluded a little infoviz might help clear up the misunderstanding.

[...]

Here's a graphic depiction:

And here's how that single person's tax prospects compare to those of married people filing jointly, married people filing separately and heads of household:

UPDATED 12:57 PM 8 Mar 2009