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Old 04-16-2003, 02:44 PM   #11
Timber Loftis
40th Level Warrior
 

Join Date: July 11, 2002
Location: Chicago, IL
Posts: 11,916
Well, if the feds changed the entire rate, or readjusted the bracket, it would make some sense of what happened to you. Otherwise, I too am hard-pressed.

But, I do know that the way the tax code reads, using the above hypothetical, is:

Up to $30,000 Income: Your tax responsibility is equal to your Taxable Income X 0.20.

Up to $ X,000 Income: Your tax responsibility is equal to $6,000.00 plus your Taxable Income less $30,000 X 0.25.

Note that this clearly taxes 20% of the first bit (6K = 30K X .20) and only takes 25% of the amount over. So, the code itself goes so far as to use the actual dollar amounts to make it very clear.
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