So let's talk about marginal tax rates, especially with the discussion going on now. Note this is a hypothetical example with simple numbers to make it easy to understand and explain. Let's say Bubba earns $10 million dollars a year. There are two tax rates: 20% for all income up to $1 million dollars, and 70% for everything over $1 million. Bubba's first million is taxed at 20%. But the remaining $9 million is taxed at 70%, which means he is paying $6.3 million in taxes on that income. Adding that to the taxes he pays at the lower rate means he is paying 65% of his income in taxes.

## When does taxation become theft?

## When does taxation become theft?

## When does taxation become theft?

So let's talk about marginal tax rates, especially with the discussion going on now. Note this is a hypothetical example with simple numbers to make it easy to understand and explain. Let's say Bubba earns $10 million dollars a year. There are two tax rates: 20% for all income up to $1 million dollars, and 70% for everything over $1 million. Bubba's first million is taxed at 20%. But the remaining $9 million is taxed at 70%, which means he is paying $6.3 million in taxes on that income. Adding that to the taxes he pays at the lower rate means he is paying 65% of his income in taxes.