Does USA Today not understand how “tax brackets” work?

Matt Iglesias:

USA TODAY DOESN’T UNDERSTAND TAX BRACKETS | Via Dean Baker and Jon Chait, USA Today reminds us that neither its writers nor editors understand how tax brackets work: “That raise actually might not be as good as it looks. The extra money is nice, but it could very well bump you into the next tax bracket, possibly leaving you with less money than you had before the raise.”

Nope. Taxes are assessed on the marginal dollar. For going into a higher bracket to actually leave you with less money, the marginal rate would have to be about 100 percent rather than in the thirties. Getting a raise means you end up with more money.

How did that get past an editor, I ask you. The “low information voter” who turns to USA Today to learn about tax cuts and fiscal policy gets no help, it seems.


About Guy N. Texas

Guy N. Texas is the pen name of a lawyer living in Dallas, who is now a liberal. He was once conservative, but this word has so morphed in meaning that he can no longer call himself that in good conscience. Guy has no political aspirations. He speaks only for himself.
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