Updated: Oct 15, 2020
This is a good question and I've learned many ways to explain this over the years. Since this is a blog, I'll outline my lengthier way of answering this question.
The $100 of Income Story
This $100 represents ALL the money you are ever going to earn and accumulate in your entire life.
35% (or $35) will go to various forms of TAXES:
"But David, I'm not in the 35% tax bracket." It's not just your tax bracket that I'm talking about.