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This is slightly misleading. The federal tax rate is a tiered system, meaning a portion of your income is taxed at a certain rate and income that exceeds that tier is taxed at a different rate after that and so on.

The federal tax rate is much lower if you account for that.

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Op did say “marginal rate”

Yes, but you'd be amazed at how many people don't understand what that means. No doubt it's not true on HN, but a lot of people among the general public seem to be under the impression that the effective rate jumps at thresholds.

I personally know someone who turned down a payrise for this reason.

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