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Unless you made a shitload of money I highly doubt your effective rate was 40%. The rate on the last x% of your money might have been taxed at 40% but most places have a progressive tax structure. Deductions should lower the effective rate further.

I'm speaking for the US, by the way.



Yeah, my combined marginal federal and state rates are like 33%, my effective rate after mortgage interest and charitable deductions was like 8-9%. I'm going to try to be more like Google though.... ;)


If he made shitload of money, he'd be doing tax mitigation of his own, and probably wouldn't pay 40% either.




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