I see so many educated people not realising this. The maths involved is something we learnt in ~ 5th grade, and I distinctly remember doing exercises on marginal rates in primary school in maths class. It’s even simpler than compound interest - which is a staple of maths class later on.
Yet so many people say there’s a problem with the education system that it doesn’t teach practical skills like these. It clearly does, kids just don’t remember it. Maybe it’s because they don’t need to use this knowledge until almost a decade later.
I don’t remember ever having done this in school. In any case, the math is easy, yes. The hard part is knowing the rule that the government put in place for taxing you, and that’s something you just have to know. You can’t logic your way to it.
Not understanding the marginal tax rate.
I see so many educated people not realising this. The maths involved is something we learnt in ~ 5th grade, and I distinctly remember doing exercises on marginal rates in primary school in maths class. It’s even simpler than compound interest - which is a staple of maths class later on.
Yet so many people say there’s a problem with the education system that it doesn’t teach practical skills like these. It clearly does, kids just don’t remember it. Maybe it’s because they don’t need to use this knowledge until almost a decade later.
I don’t remember ever having done this in school. In any case, the math is easy, yes. The hard part is knowing the rule that the government put in place for taxing you, and that’s something you just have to know. You can’t logic your way to it.
Not using smooth functions for tax calculations.