You're the one who doesn't understand how this works.
There are these things called tax brackets, taking your example you would pay 10% on the $20,000 dollars and 20% on the $1,000 dollars above that for a total of $2,200. You don't suddenly pay twice as much tax in total because you made an extra dollar.
Slashdot Mirror
You're the one who doesn't understand how this works.
There are these things called tax brackets, taking your example you would pay 10% on the $20,000 dollars and 20% on the $1,000 dollars above that for a total of $2,200. You don't suddenly pay twice as much tax in total because you made an extra dollar.