• Progressive tax bracket

• 1. Everyone pays $1,905 on first $19,050 of taxable
  2. $140k taxes at $400k?
     1. 35% tax bracket
     2. Actual taxes = $91,379 (22.8% taxes)

| Tax Rate | Taxable Income Bracket | | 10% | $0 to $19,050 | | 12% | $19,051 to $77,400 | | 22% | $77,401 to $165,000 | | 24% | $165,001 to $315,000 | | 32% | $315,001 to $400,000 | | 35% | $400,001 to $600,000 | | 37% | $600,001 or more |

• Deductions

• 1. Standard deduction - $24,400
  2. Itemized - mortgage interest, state/local taxes, charitable giving, medical expenses over 7.5% of AGI

• Other considerations

• 1. 1. States have separate tax brackets too 2. Social Security @ 6.2% up to $132,900; Medicare @ 1.45% not capped 3. Different types of taxes for earned income, capital gains, dividends

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