mitch, a single taxpayer , earns $100,000 in taxable income and $10,000 in interest from an investment in city of birmingham bonds. if mitch earned an additional $80,000 ,18,289.50 would his 2022 marginal tax rate be on the $80,000
Income between $1 and $10,000 is taxed at a 10% rate, income between $10,000 and $20,000 is taxed at a 20% rate, and all income over $20,000 is taxed at a 30% rate. Under this arrangement, someone making $10,000 is subject to a 10% tax rate and a $1,000 total payment. A $5,000 earner pays $500, and so forth.
When the tax rate is lower for people in higher income groups, it is said to be regressive. In other words, lower-income families pay a bigger share of their income in taxes than do higher-income households. For instance, a shop employee earning $20,000 may pay taxes at a rate of 40%.
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