I know people who still repeat the line that earning more money will push them into a higher tax bracket and they’d end up with less money than if they stayed at their current income.
In places with marginal tax brackets, no. The numbers are different where I live, but the principle (hah) is the same:
If you earn 291k a year, the first 191k is taxed at 24%. The money left over (100k) gets taxed at 32%. So if you get a raise or bonus, the “tax problem” is only that your extra money is immediately taxed at 32%.
This myth is probably prevalent because corporations have spent the last 40 years squeezing every cheat and every advantage they can out of the system — to the point where anything that even smells like a “good gesture” is rightfully met with suspicion and contempt from the people they’ve been so blissfully exploring.
So sick and tired of this myth, how are Americans so goddamn ignorant of their own tax system that this continues to persist.
Corporations are evil for a million and one reasons. This isn’t one of them.
I know people who still repeat the line that earning more money will push them into a higher tax bracket and they’d end up with less money than if they stayed at their current income.
Oh man don’t even get me started on that one too. I knew some people that genuinely thought a bonus would make them earn less overall.
If i was a manager and someone turned down a raise/bonus because “tax” reasons, i would seriously evaluate my own managerial skills…
Like, how did i not notice this person is a complete moron and why did i offer them a raise?
Isn’t this possible? Tax brackets for 2024 I thought for single filer is 24% below 191k and 32% over 191k, isn’t it?
In places with marginal tax brackets, no. The numbers are different where I live, but the principle (hah) is the same:
If you earn 291k a year, the first 191k is taxed at 24%. The money left over (100k) gets taxed at 32%. So if you get a raise or bonus, the “tax problem” is only that your extra money is immediately taxed at 32%.
This myth is probably prevalent because corporations have spent the last 40 years squeezing every cheat and every advantage they can out of the system — to the point where anything that even smells like a “good gesture” is rightfully met with suspicion and contempt from the people they’ve been so blissfully exploring.
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