Regressive

Progressive

A+

The pre tax amount was 5,714,285.71. If the tax leaves 70%, that equals exactly 4 million.

At this time JULY 9 2010 no one knows what the income tax rate will be for the tax year 2011 when you file the 2011 tax year income tax return in the year 2012.

And there is not expected to be a tax rate on "salary income" and never has been. Tax is paid on either taxable income - which is different than "salary" by many factors, including acceptable deductions and exemptions, and many other things, with a different rate applied only to certain Long Term Capital Gains or entirely exempt income.

It would be uncommon for 2 people, even working the same job with identical salaries, to pay the same tax.

After Tax Profit = Pretax Profit * (1 - Tax Rate)

Solve for Tax Rate

Tax Rate = 1 - (After Tax Profit/Pretax Profit)