almost there....we might just be able to understand each...

almost there....we might just be able to understand each other.

you claim I can't do math....but you have not pointed to a single mathematical error in my post.
surely not big enough to destroy the central point of what I'm saying.

there is a duality to the tax....

you have to separate the calculation of tax....with how much you pay.

it true that you will pay marginal rates on income above the threshold....that is part of the calculation as I have shown.

it is also true that you don't pay marginal on any specific part of your income.

that $100 is not taxed separately....

it is included in one lump sum amount and then the tax is calculated on the lump sum.

there is not at any stage a seperate tax rate applied to just that $100 during a tax assessment.

the shoe example is flawed in that the money you pay is directly attributable to a specific pair of shoes and a specific amount.

this is NOT the case with the $100 dividend.
the $100 does not have an attributable tax rate...it is included in one lump sum like any other income.

put it this way.
think if you get the $100 dividend in the middle of the year...and then at the end of the year get another $100 in salary.... what rate do I pay on which part of the income??