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If you are really paying the IRS 35% of your income, you're doing your taxes wrong. Even if you took NO deductions, you'd still only pay 35% on the PORTION of your income that is in the 35% tax bracket, not the entire income.
Cry me a river and then go read the code.
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Ive read these instructions up, down and sideways and I dont see anything about this. I plan to use a CPA, but still can you explain more.
It says if you are over 100K you need to use the tax computation on page 77
if over $326,450 then x.35 -$19,530.
it doesnt speak anywhere about portions, but I sure as hell hope you are right!
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scroll to the last page of this irs link:
http://www.irs.gov/pub/irs-pdf/i1040tt.pdf
If your taxable is over:.........The tax is:
326,450..........................94,727.50 + 35% of the amount over 326,450
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that $94,727 includes taxing the portion between 150,150 and 326,450
at 33%, the portion between 71,950 and 150,150 at 28% ... all the way down to the first $7,300 at 10%.