Re: Tax question...
[ QUOTE ]
I'm not sure there are any scenarious where you would decline an investment because it would put you in a higher tax bracket - you're "take home pay" is still higher.
[/ QUOTE ]
That's not the question. The question is, when you're deciding between a tax-exempt investment and a taxable investment, which tax rate do you use in your decision-making analysis? The answer is the marginal tax rate.
In fact, the answer to virtually anything related to economics is "the marginal one".
|