OFF TOPIC To All - A tax question:
I'm trying to figure out the tax, by using the tax rate schedule (not the tables). The tax rate schedule kicks in on incomes over $100,000. So, what would the tax be on, say, $500,000.
The 1996 rate is for:
84,020.50 PLUS, 39.6% of the amount over 263,750.
My question is, would the $84,020.50 be subtracted from the $500,000 before multiplying by .396 (thus using 415,979.50 as the amount) or, would I consider the entire $500,000, minus 263,750 equalling 236,250 as the amount to multiply by .396.
Tim -- hater of taxes -- Bo
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