The more You Earn The More You Keep – Busting the Tax Bracket Myth

This graphic I saw on a reddit board busts the common myth that the more you earn the more you pay in taxes, because you get bumped up into a higher tax bracket.

However thanks to America (and most countries) having a progressive taxation system, the more you earn does not mean a proportionally higher level of taxes! This is shown in the graphic below.

Note that the below is a simple example and does not include tax credits or deductions you may be eligible for based on your income.

Progressive Tax System (Reddit)

Discover more from $aving to Invest

Subscribe now to keep reading and get access to the full archive.

Continue reading