re: Well I just noticed on my online banking / payroll tax increase

quote:

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It went from 4.2 to 6.2 which is a 47% increase. Don't let the fact that the "unit of measure" is % fool you. It went up 47%

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Taxes are a function of the tax rate and the tax base. The tax rate was increased by 47%, but the tax base only extends to $113,700. So the revenue increase is 47% on the first $113,700, but there was zero increase on income above that. Thus the increase in tax revenue will be less than 47%. Don't let the % fool you as to the total economic effect as it can also be misleading.