LogFAQs > #978974250

PraxagoraKassan posted...

That's not reading at all, why don't you just explain it?

Basically: if you make a certain amount of money (a lot) you will pay proportionately less than someone paying 7% of their taxable money. I guess?

I'm going to try to put this in the dumbest possible terms

Jeff Bezos's $8.5 billion dollars in income is taxed at 20% because it's capital gains, and the highest possible tax rate for capital gains is 20%. If someone works for a living their income is ordinary income. If they're single (not married) and make over $43k in taxable income, any amount of ordinary income over that $43k is taxed at a minimum of 22%. 22% is a higher percentage than 20%.

I can try to dumb it down just a little bit further. Rich people who make money just from having money have that money taxed at a lower percentage than middle class people who work to earn an income.