• Skua@kbin.social
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    3 months ago

    I think you’re missing what an “effective tax rate” is. If your country’s income tax is 0% on the first 10k, 10% on the next 10k, and 20% after that and you earn 40k, your effective tax rate is:

    • 0 on the first 10k
    • 1k on the next 10k
    • 4k on the remaining 20k
    • 5k total out of 40k = 12.5% effective tax rate

    The wiki page does not show that data.