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I want to explain to you how tax brackets work in the USA so lets say that you make one hundred thousand dollars a year this pile of money represents one hundred thousand dollars so lets get this organized by tax brackets so youre looking at a total of one hundred thousand dollars in the first pile of money is eleven thousand dollars in the second pile thirty three thousand seven hundred twenty five dollars third pile fifty thousand six hundred fifty dollars and the fourth pile four thousand six hundred twenty five dollars the reason why Im showing you this one hundred thousand dollars organized into these four piles is because thats how tax brackets work so you see the first eleven thousand dollars that you make will be taxed at ten percent the next thirty three thousand seven hundred twenty five dollars that you make will be taxed at a rate of twelve percent the next fifty thousand six hundred fifty dollars that you make will be taxed at a rate of 22 percent the next four thousa
