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<blockquote class="Quote"><div><strong class="bc-author">LaserWolf</strong> said:</div><div><blockquote class="Quote"><div><strong class="bc-author">BobDesperado</strong> said:</div><div><blockquote class="Quote"><div><strong class="bc-author">Rockadelic</strong> said:</div><div>Here is what he said....I can see how someone who makes $250,001 could interpret the below like you did as the top 2% income earners make $250K and up.</div></blockquote>
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	There's a widespread misunderstanding about the US tax system.  If the top marginal tax rate is 36% and cuts in at $250,001, a person earning that amount doesn't start paying 36% on his entire income, just on the $1 that's above the limit.<br />
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	Otherwise no one would ever be paid $250,001.<br />
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	I hope this explanation makes sense.</div></blockquote>
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	Is this true? wouldn't they pay 36% on all earned taxable income?<br />
	You are saying they are paying 28% (or what ever the lower rate is) on income under 250,000 and 36% on income over?<br />
	So if they earned 350,000 in taxable income they pay $70.000 (28%) on the first 250,00 and 36,000 (36%) on the other $100,000? <br />
	Doesn't sound right to me.</div></blockquote>
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	It doesn't sound right to a lot of people, but it is true.  Here's a good illustrative article:<br />
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	http://money.howstuffworks.com/personal-finance/personal-income-taxes/tax-brackets1.htm<br />
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	I have a Republican brother-in-law with an MBA who constantly bitches about being in the highest tax bracket and who can't wrap his mind around this reality.  When I explained it to him he thought I was kidding.  But it's reality.<br />
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	(By the way, this is what the term "progressive taxation" refers to.  I've heard conservatives mock the term because they think the "progressive" part means it's some liberal scheme.)

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