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**ARKLqAZ6** · 11-15-2010, 11:43 PM

The other point of confusion is that there seems to be an assumption in some quarters that if you earn $275,000/yr, that your entire income is suddenly taxed differently than someone who earned $250,000. That's not true. All of the tax cuts in place for earners up to 250,000 apply to everyone's first $250,000 in taxable earnings. Any increase in tax rates only applies to your taxable income in excess of $250,000. So that person at $275,000 will only see a tax rate rise applied to $25,000 of their income.

11-15-2010, 11:43 PM	#8
ARKLqAZ6 Join Date Oct 2005 Posts 479 Senior Member	The other point of confusion is that there seems to be an assumption in some quarters that if you earn $275,000/yr, that your entire income is suddenly taxed differently than someone who earned $250,000. That's not true. All of the tax cuts in place for earners up to 250,000 apply to everyone's first $250,000 in taxable earnings. Any increase in tax rates only applies to your taxable income in excess of $250,000. So that person at $275,000 will only see a tax rate rise applied to $25,000 of their income.
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