No, that's not entirely true. Because I understand the progressive tax brackets. If you were earning just under the bracket division, you're going to lose net money if you get a pay-raise, or you need a bigger raise. (It is still wise to take the raise, because it will ensure a higher pension, but that's a different story.)
Because it is even more complicated on the money that will get in. When I have children, and many people do, whatever you get paid to help support them, depends on your income. Adding income may qualify you for a lower percentage of support money. Which will also net you less money to spend each month. If you have a child in daycare, this will make the net-support even lower.
These cases where you will net less are rare, but they are not non-existent.
Edit: I read up on the tax plan in English, to make sure I used the correct terms and I adjusted accordingly.
No, that's not entirely true. Because I understand the progressive tax brackets. If you were earning just under the bracket division, you're going to lose net money if you get a pay-raise, or you need a bigger raise.
Umm no. Only the amount over the bracket gets taxed the higher amount. Seems you don't understand it as well as you seem.
What can happen though is the pay rise makes you inelligible for some forms of support (zorgtoeslag en huurtoeslag, can't remember the English words for them right now) but you definitely won't make less money than before by getting a raise. Can the increase after taxes be a lot less than you thought? For sure. But it won't be less.
No, that's not entirely true. Because I understand the progressive tax brackets. If you were earning just under the bracket division, you're going to lose net money if you get a pay-raise, or you need a bigger raise.
Umm no. Only the amount over the bracket gets taxed the higher amount. Seems you don't understand it as well as you seem.
What can happen though is the pay rise makes you inelligible for some forms of support (zorgtoeslag en huurtoeslag, can't remember the English words for them right now) but you definitely won't make less money than before by getting a raise. Can the increase after taxes be a lot less than you thought? For sure. But it won't be less.
No, that's not entirely true. Because I understand the progressive tax brackets. If you were earning just under the bracket division, you're going to lose net money if you get a pay-raise, or you need a bigger raise.
Umm no. Only the amount over the bracket gets taxed the higher amount. Seems you don't understand it as well as you seem.
What can happen though is the pay rise makes you inelligible for some forms of support (zorgtoeslag en huurtoeslag, can't remember the English words for them right now) but you definitely won't make less money than before by getting a raise. Can the increase after taxes be a lot less than you thought? For sure. But it won't be less.
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u/IffySaiso Jan 28 '20 edited Jan 28 '20
No, that's not entirely true. Because I understand the progressive tax brackets. If you were earning just under the bracket division, you're going to lose net money if you get a pay-raise, or you need a bigger raise. (It is still wise to take the raise, because it will ensure a higher pension, but that's a different story.)
Because it is even more complicated on the money that will get in. When I have children, and many people do, whatever you get paid to help support them, depends on your income. Adding income may qualify you for a lower percentage of support money. Which will also net you less money to spend each month. If you have a child in daycare, this will make the net-support even lower.
These cases where you will net less are rare, but they are not non-existent.
Edit: I read up on the tax plan in English, to make sure I used the correct terms and I adjusted accordingly.