Marginal rate.
whatever it is on the first 400k, say 45% (it's france) and then 90% on the remaining. So someone on 1M would pay 180k on that first 400k and then 540k on the remaining 600k.
Their total tax would be 730k leaving them with 270k which is an effective rate of 73%
England used to have a 83% marginal rate, long ago, Margaret Thatcher reduced it to 60% 1979, then later to 40% 1988
There were other taxes too that made tax for the wealthy as high as 98% pre-Thatcher.
It tends to reduce the actual receipts for government however, because people invent endless schemes to avoid having technical "income" - sham charities, starting new businesses that disburse at the lower rate to confederates, offshoring, fiddling books, cash withdrawals etc etc
Marginal rate. whatever it is on the first 400k, say 45% (it's france) and then 90% on the remaining. So someone on 1M would pay 180k on that first 400k and then 540k on the remaining 600k. Their total tax would be 730k leaving them with 270k which is an effective rate of 73% England used to have a 83% marginal rate, long ago, Margaret Thatcher reduced it to 60% 1979, then later to 40% 1988 There were other taxes too that made tax for the wealthy as high as 98% pre-Thatcher.
It tends to reduce the actual receipts for government however, because people invent endless schemes to avoid having technical "income" - sham charities, starting new businesses that disburse at the lower rate to confederates, offshoring, fiddling books, cash withdrawals etc etc