No...it is just a handwaving approximation.
usually closest to AGI times effective tax rate will be closer to 4439
...but sometimes it is even closer (AGI + tax-exempt income + Roth distribution) x Effective = 4439.
SO it is just a "supposed" feel good number for all income of every stripe x 0.0851 so you don't panic over being in the 32% tax bracket......IF all income of all kinds was taxed with no credits and no exemptions and no deductions......it would be taxed."effectively" at 8.51%
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
