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You all need to understand the difference between tax rates and MARGINAL tax rates. The slightly higher tax rate of 36% (up from 33%) on incomes over $250,000 applies to only the money you earn *beyond* $250,000. You would pay 28% on the $249,999th dollar you earn, and 33% on the $250,001st dollar you earn. So, it makes absolutely no sense to say you are going to purposely reduce your income to stay under this threshhold. Judging from the context of many of these comments, I think some people mistakenly think that once you cross $250,000, you're paying the higher tax rate on all your earnings going back to the first dollar you earned that year (which, if true, would in fact cause you to try to stay below the threshhold).
By AWK829