Mate no it makes no sense at all. You are not using the figures in their correct context.
Let me spell it out to you in simple terms.
I will use the salary of $80K plus a $100 distribution from a trust. For the purpose of the exercise I am not including medicare levy or anything else, just working straight of the tax scales.
Using your methodology Billy earns $80K a year and would pay $16467 in tax, which equates to an average 20.58 cents for dollar earned.
Then you try and apply the logic that you will be taxed at 20.58 cents in the dollar on the $100 leaving you $79.42 in your hand.
Utter bullshit. If Billy earns $80K, he pays $16467 in tax leaving him $63,533 after tax.
If Billy earns $80K plus a $100 dollar distribution , he pays $16467 plus 32.5 cents in the dollar on the $100, which is $32.50.
His total tax liability is now $16499.50 on earnings of $80,100, leaving Billy $63600.50 after tax.
$63600.50 minus $63,533 equals $67.50 difference. So Billy has $67.50 extra in his hand because he got a $100 distribution, which means he paid $32.50 tax on that $100 ...
Billy earns $80,000 his average tax per dollar earned is 20.58 cents.
Billy earns $80,100 his average tax per dollar earned is 20.6 cents.
But, and this is the point that your are missing, it doesn't matter what your average tax rate per dollar is, when you are in a tax bracket you pay tax at the marginal rate for ever extra dollar that you earn.
I will give you a more simple example to wrap your head around.
You buy a pair of shoes for $100 and you really like them, so next month you go back to the shop and buy another pair exactly the same but the price has gone up to $140. On average you have paid $120 a pair, but it does not change the fact that the second pair cost you $140. Just like in the example above where Billy has paid $32.50 in tax on that $100 distribution.
The sad thing is you come on here big noting yourself and someone has actually given you thumbs up.
Your examples have been completely wrong. I reiterate what I have said before, you lack basic mathematical comprehension.
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