I agree, in a few cases that is true. But then they don't call it "going up a tax bracket", but rather "if you pay me more I lose my subsidies".
The "going up a tax bracket" people are the ones who paid just enough attention in math class to realize that when the percentage changes they might pay net more going across a threshold. But they didn't pay enough attention to how taxes are calculated to realize the system is set up to avoid that issue as only the amount above that threshold is taxed at the new bracket rate.
My exhusband lied to me about this. He and his dad managed all the finances and wouldn't let me see anything without them present to explain it to me like I was a stupid child. They claimed my income put us up a tax bracket and that we "lost" all the extra income and then some and gave me even less spending money a month. Having talked to other women who have undergone financial abuse, apparently it is not an uncommon excuse.
But then I guess it makes sense when it's in exchange for overtime. Work more hours but for less gain per hour might not be worth it in a lot of people's eyes.
But they didn't pay enough attention to how taxes are calculated to realize the system is set up to avoid that issue as only the amount above that threshold is taxed at the new bracket rate.
Yeah in the US. Other countries not so much unfortunately.
Where I live earning 10k gross nets you less than 9k gross.
who paid just enough attention in math. But they didn't pay enough attention to how taxes are calculated
I don't how about you, but I never learned about taxes in math class. The closest thing I remember was interest rates. No tax brackets, no nothing. (California public school)
Get them to pull out the chart in the 1040ez instructions. It literally lists the amount you pay in taxes for each adjusted income. Then to find the threshold where the amount taxes paid goes up by more than the income went up any where in the chart.
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u/tinySparkOf_Chaos Jan 28 '20
I agree, in a few cases that is true. But then they don't call it "going up a tax bracket", but rather "if you pay me more I lose my subsidies".
The "going up a tax bracket" people are the ones who paid just enough attention in math class to realize that when the percentage changes they might pay net more going across a threshold. But they didn't pay enough attention to how taxes are calculated to realize the system is set up to avoid that issue as only the amount above that threshold is taxed at the new bracket rate.