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Implement a TIERED Tax system as inspired by Sales Compensation Plans

Created by T.P. on November 14, 2012

TIERED tax, based on current tax rates & adding upper brackets, might look like:
10% on $0-8500
15% on $8501-34500
25% on 34501-83600
28% on 83601-174400
33% on $174401-379150
35% on $379151-500000
40% on $500001-1,000000
45% on 1000001-10million
50% over $10million
The effective tax rate on $40k would be $15.31%; $1.5 million would be taxed $38.49% overall. Income in the millions is likened to a boondoggle for a salesperson whose commission level is reduced accordingly. Conversely, one gets taxed at a higher rate for the boondoggle dollars while still benefiting from them. “As income levels rise, marginal propensity to consume tends to drop. Thus it is arguable that economic demand can be stimulated by reducing the tax burden on lower incomes while raising the burden on higher income."

Budget & Taxes
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