>>Hell, if the family had 7 kids, their marginal
rate would be 101%!!! How does that grab you???
For every extra dollar earned, the family would
*LOSE IT ALL* plus *OWE AN EXTRA CENT*!!!<<
No, the exemption just wouldn't apply at all if you had seven kids, and you would pay whatever the overall tax rate is on $110,000. If 31%, you pay $34,100. That's about $3,100 for every $10,000 in income. There are no conditions under which taxes exceed income. I think the basic error is on focusing on one $10,000 tranch of income, not overall income, and assuming 4 children (isn't the national average 2.1?). Plus, as I've shown, the numbers differ dramatically if we look at $140K (or $150K, 160K). Also, I'd guess that the vast majority of American families with 4 children earn nowhere near $100,000 a year. (looking back at the McCain site, the phase out appears to kick in at $110K under current law, but it's not entirely clear).
I still do not agree with your 71% caculation, but I wouldn't belabor it by explaining why again.
What percentage of American families earn over $100,000 anyway? I read recently that the average wage is about $25,000. |
