A Background Of Taxes - Part 1: Difference between revisions
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Revision as of 09:53, 15 October 2024
A disgruntled ex-employed call the state, reported my family's glass business for sales tax evasion. Among the local state sales tax auditors called to schedule some time to pore through our books.
Contributing a deductible $1,000 will lower the taxable income of the $30,000 each year person from $20,650 to $19,650 and save taxes of $150 (=15% of $1000). For your $100,000 a year person, his taxable income decreases from $90,650 to $89,650 and saves him $280 (=28% of $1000) - almost double the!
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In fact, this column was inspired by the latest York Times article that ran last week, arguing that generous tipping "is a technique that is guaranteed to no result on your ability." (1) Then why does the person being tipped pay duty?
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