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Originally Posted by Highwayman  Since the thread is about income tax rates and therefore income tax I’m calling BS on that. If you pay tax on 100% of your income you ain’t doing it right.
There are exemptions (yourself, dependants) and deductions (standard and itemized) that is untaxed income. The range of income in the lowest bracket (10%) is taxed at 10%. What falls into the 25% bracket is taxed at 25% and so on. All income below that 10% bracket isn’t taxed and it’s calculated into the tax tables.
It would be nice if we could think that you understood a tax system that you are so intent on changing. |
I understand just fine, you are the one on training wheels here. I was talking to Army about his base pay being taxed and his allowances are tax-exempt. Since I have no tax-exempt status, 100% of my income is taxable. Any deductions and exemptions are subtracted from the taxable income, which again, in my case is 100%.