Share your insights or perspective on the financial matter presented in the input.

In the USA, does the income tax rate on my wages increase with the amount of money in my bank account?
I know that if you make more, you pay more, but do those who have   more, not make more, pay higher income tax? In general, no. In most locales, income tax is based on income, not on wealth. I am retired. I have little income but a fair amount of wealth. I play very little income tax. (But I do pay other kinds of taxes.) Here's a scenario. 2 people of average wealth with similar situations   have the same job with equal pay. After 5 years, their situations   haven't changed and they still earn equal pay, but now one has $40,000   in their account and the other $9,000. Does one now pay higher income   tax because he has more in his account or does he pay the same because   he makes the same? In most locales, you pay income tax on everything that is counted as income. Your salary is income. In some cases, earned interest is income.  But aside from the earned interest from your bank accounts, neither the $40,000 nor the $9,000 is income. Your huge mansion isn't income. Your expensive car isn't income. The huge amount of land you own isn't income. The pricey artwork on your walls isn't income. You don't pay income tax on any of these, but your local may impose other taxes on these (such as property tax, etc.) [Note: consult the tax laws of your specific locale if you want to know details.]