Economists: Top marginal tax rate should be 90%

A group of economists say the top marginal tax rate in America should be 90% for the most stable economy.

Right wingers will certainly balk at that, but only because they do not understand (nor will Fox News explain) how marginal tax rates work:

A 90 percent top marginal tax rate doesn’t mean that if you make $450,000, you are going to pay $405,000 in federal income taxes. Americans have a well-documented trouble understanding the notion of marginal tax rates. The marginal tax rate is the amount you pay on your income above a certain amount. Right now, you pay the top marginal tax rate on every dollar you earn over $406,750. So if you make $450,000, you only pay the top rate on your final $43,250 in income.

Advertisements