Obama vs the Special Olympics

[Imran Siddiqui]

Snoopy, we can use a different linear function, though. Haven't completely thought it out, but off the top of my head, what about one like (and I know its very, very simplistic):

Tax = Income/2 - $15,000

So, at $500,000, you'd have 500,000/2 - 15,000 = $235,000 in taxes (47% in taxes)
at $200,000, it'd be 200,000/2 - 15,000 = $85,000 in taxes (42.5%)
at $100,000, it'd be 100,000/2 - 15,000 = $35,000 in taxes (35%)
at $75,000, it'd be 75,000/2 - 15,000 = $22,500 in taxes (30%)
$50,000 -> 50,000/2 - 15,000 = $10,000 in taxes (20%)

At $1 mil -> 1,000,000/2 - 15,000 = $485,000 in taxes (48.5%)
$5mil would be 49.7%

Highest amount is, of course, a shade low of 50% here (as the value of $15,000 diminishes the higher you go). Maybe not what McArdle had in mind, but its another option. Obviously crude, but something like that.

[Ramo]

To be clear, what McArdle was referring to is a differentiable function (a continuous tax rate), not necessarily a linear one. Which would be a good idea (as opposed to linear).

Go to a web site, enter your taxable income and get a result.