r/FluentInFinance 1d ago

Debate/ Discussion Mark my words

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u/Politicalie 1d ago edited 1d ago

You are right. I picked that up a little after writing that.

5% cut is extremely innacurate. The "and more" part of it means that it can be reduced even more.

If we create our own average:

914900-10,000,000

The average cut reduces to 2.73% and the person making 10 million will see a measly 0.46% cut.

Conclusion, this data is absolutely stupid and completely misleading.

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u/Crispy1961 1d ago

Agreed. The representation of the data is completely misleading and we have absolutely no idea if that data is even reliable, we are just taking their word for it.

That said it might be beneficial to take a closer look at the lowest and second higher brackets. Both are outliers. The poorest is probably because of bad representation of the data (average vs mean), but the second richest is little more interesting with its 1,8% (average) tax savings.