This is the problem with people not understanding how things are done. Even if you make 400k and above, that doesn’t mean 62% of the 400k is taken away from you. It means 62% of 400k is taxable. Then depending on your income level, the amount you pay is broken up into tiers (tax rates). So in essence you are paying a percentage of a percentage. I hate that people just take a number and run with it but have no idea how it’s calculated out. Sure the rich will have to pay more but you’re foolish if you think the government is saying yeah we are taking over 50% of your money if you’re making over 400k.
I’ve seen people throw around this misconception frequently and it’s been echoed over the internet.
Good call posting this, I wanted to mention it too cause a lot of people don't know how a marginal tax rate works.
Lets say I make a Million a year.
The hypothetical tax rates are
0-20,000 = 15% - My first 20k will be taxed at 15%
20,000-60,000 = 20% - My next 40k will be taxed at 20%
60,000-120,000 = 25% - Next 60k at 25%
120,000-400,000 = 35% - Next 280,000 at 35%
400,000+ = 50%
...you get the idea.
I actually get taxed in this scenario 424k instead of just tax the last one and apply it to my gross income.