I make $2,000,000 a year so my tax bracket is 37%. $2,000,000 times .37 is $740,000 so I pay $740,000 in federal income tax. I then pay another $124,000 into Social Security. So I’m already down $864,000, so far I have $1,136,000 left. I then pay another $29,000 to Medicare every year so I pay $893,000 in taxes every year.
I also have to pay income tax in Germany which is 45% Since I live in America do they 45 - 37 which is 8%. So I pay $160,000 to the Federal Republic of Germany every year. So I have $1,107,000 left. Then I have to pay a 3.5% state income tax in Bavaria. So I have to pay another $70,000. So I’m now left with $1,037,000. Also Texas and the federal government usually take half my capital gains.
Edit: I just found out my accountant has been stealing from me. I fired him and he's been arrested.
Let me tell you something about taxes.
I make $2,000,000 a year so my tax bracket is 37%. $2,000,000 times .37 is $740,000 so I pay $740,000 in federal income tax. I then pay another $124,000 into Social Security. So I’m already down $864,000, so far I have $1,136,000 left. I then pay another $29,000 to Medicare every year so I pay $893,000 in taxes every year.
I also have to pay income tax in Germany which is 45% Since I live in America do they 45 - 37 which is 8%. So I pay $160,000 to the Federal Republic of Germany every year. So I have $1,107,000 left. Then I have to pay a 3.5% state income tax in Bavaria. So I have to pay another $70,000. So I’m now left with $1,037,000. Also Texas and the federal government usually take half my capital gains.
Edit: I just found out my accountant has been stealing from me. I fired him and he's been arrested.
Would you not pay lower taxes in the lower bracket running up to your 2 mil total?
That's how it's supposed to work