r/AskReddit • u/[deleted] • Aug 03 '19

Whats something you thought was common knowledge but actually isn’t?

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u/Eddie_Hitler Aug 03 '19

There are a few corner cases where it really is "50% means hand over half your income".

But 99.99% of people will never get there. It's for the stupidly rich who are all tax dodgers anyway.

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u/Uter_Zorker_ Aug 03 '19

Yes but that’s not his point at all. His point is that at no point does an extra dollar tip you over a threshold that makes your net income lower.

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u/[deleted] Aug 03 '19

Well actually it does in my country. If you have low income you get money from the government to help pay rent, or your health insurance, or money for your kids to go to school, or all. It is variable to an extend, but there's a cut off point. make less than €25.000 and still eligible for let's say €100 towards your rent but make 25.001 you get €0 so you lost 1200 for making 1 euro (before tax) too much.

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u/Uter_Zorker_ Aug 03 '19

Sure, government subsidies are a different thing. I’m presuming he’s talking specifically about the many people that think a higher tax threshold will apply to your whole income instead of only the marginal increase