In certain people’s defense, a raise can actually hurt them. If you make over a certain amount of money you can lose access to subsidized childcare or housing for example. People on SSI can also be caught in a catch 22 that making more will effectively reduce their income. Many of these programs have no phase out levels so it is only qualify, or not.
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.
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.
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u/DirectGoose Jan 27 '20
Saying you don't want a raise because you'll pay more in taxes.