Seems to similar to Canada’s progressive tax system, except for the bottom tier. Here we have 0% for the first $12,000 in income.

Add in the provincial taxes, the marginal rate becomes 50% for income more than $200,000. I imagine the Americans states have their own progressive system to add to a similar 50% marginal rate.

A successful freelancer in Canada can face tax problems. If the freelancer earns $60,000 in a year, there were no deductions taken off the “paycheck”. So the freelancer has to pay the owned taxes ASAP, which I estimate about $12,000. Not only that, the freelance must prepay next years taxes (in quarterly instalments). The wise freelancer should have at least $24,000 saved up to stay on the good side of the tax man after the tax returned is filed. Many don’t!