QRDeNameland,
Actually your math is off, at least on the American tax brackets.
Below are the 2009 Tax brackets for a citizen who files as single.
Single Filing Status
(Tax Rate Schedule X)
10% on income between $0 and $8,350
15% on the income between $8,350 and $33,950; plus $835
25% on the income between $33,950 and $82,250; plus $4,675
28% on the income between $82,250 and $171,550; plus $16,750
33% on the income between $171,550 and $372,950; plus $41,754
35% on the income over $372,950; plus $108,216
If you use the example of the third tax bracket($33950 - $82250) as an example. This means that the starting Tax due is $4,467 plus 25% of all income above this value up to $82,250. So at a income of the lowest value for this bracket($33,950) your tax due is $4,675 which is around 14% tax rate. This progresses the highest value in this tax bracket($82,249) which has a tax of $4467+(.25($82250-$33950)) which equals $16750 or around 20% tax rate. This is a progressive federal income tax rate range of 14%-20%, this is significantly different than the flat 25% you referenced.
This logic is applied to all tax brackets, and generally speaking the tax rate increases as your income increases, from 10% in the lowest bracket to around 30% in the highest. Of coarse there are other deductions to compare, but as far as a federal income tax goes this is accurate.
