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Divorce the IRS

Welcome to Divorce the IRS, the Retirement Income Planning Podcast—built for people who want to pay the least amount of taxes possible and create retirement income that actually lasts. Inspired by Jimmy Miller’s bestselling book Divorce, the IRS, this show takes you behind the scenes of the tax rules, retirement strategies, and planning decisions that can quietly determine how much of your money you keep.

The truth is, taxes aren’t just “something you deal with later.” The U.S. tax code is massive, confusing by design, and full of traps that can hit hardest right when you need your money most. From 401(k)s and IRAs to Social Security and Medicare, many common “smart moves” can turn into expensive surprises—like required minimum distributions, Medicare surcharges, the widow’s penalty, and other retirement tax time bombs most people don’t see coming until it’s too late.

With 20+ years of experience as a global wealth manager, Jimmy breaks these topics down in a clear, practical way—so you can plan proactively, avoid unnecessary taxes, and build a retirement where your delayed gratification finally pays off. Subscribe so you never miss an episode, and remember: this podcast is for general education only and isn’t legal, tax, or investment advice—always consult a qualified professional for guidance specific to your situation.

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Divorce the IRS

Debunking Tax Brackets, Marginal vs Effective Tax Rates Explained

January 12, 2026 • James Miller • Episode 4

0:00 | 6:34

In this episode of The Divorce the IRS Podcast, Jimmy Miller tackles one of the most damaging tax myths in America, the belief that earning more money can actually make you worse off. After more than two decades of working with clients, Jimmy has seen how deeply misunderstood our tax system really is, and how that confusion leads people to avoid raises, overtime, and smart income opportunities out of fear of higher taxes.

Jimmy explains how the U.S. uses a progressive tax system, where different portions of your income are taxed at different rates. Only the last dollars you earn are taxed at the higher bracket, not all of your income, yet many people wrongly believe that crossing into a new bracket raises the tax rate on everything they make. That misunderstanding has cost families years of lost income and missed opportunity.

From there, Jimmy introduces the two ways taxes must be measured, marginal tax rates and effective tax rates. The marginal rate is what you pay on your last dollar earned, while the effective rate shows what you truly pay on average across all of your income. Using a simple real world example, he shows how someone who ends up in the 22 percent tax bracket may only be paying around 12 percent in actual taxes.

By understanding these two measurements, you gain a much clearer picture of what the IRS is really taking from you. This foundation is critical for building a tax free retirement and avoiding strategies that look good on paper but fail in real life. This episode sets the stage for deeper tax planning by giving you the clarity needed to make smarter income and investment decisions.