Have you ever heard someone question whether a promotion would be worth it because it would push them into another tax bracket? That’s not how income tax rates work. But it's a common misunderstanding rooted in a confusion between average and marginal tax rates. Your average income tax rate is the total income tax you … Continue reading How do Tax Rates Work?
The federal government recently projected a $343 billion deficit for the current fiscal year. Predictably, everyone seems to be freaking out. That’s not a surprise. $343 billion is a lot of money, especially if you aren't used to thinking about government finances. Imagine taking out a $343 billion mortgage! This has lead to all sorts … Continue reading Is a $343 Billion Deficit a Big Deal?
Recently, I've had a few friends ask me about government responses to the pandemic and how sustainable this level of borrowing can be. They are all worried about government debt. With the amount of increased debt we are looking at, I’m not worried at all. And for your peace of mind, I think it's worth … Continue reading Government Debt Should Not Keep You up at Night