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then it may well be a smarter deal fiscally even without the pay increase, particularly if your marginal tax is high. How could that possibly be the case?
by awfgylbcxhrey 10y ago
then it may well be a smarter deal fiscally even without the pay increase, particularly if your marginal tax is high.
How could that possibly be the case?
- gcp 10y agoBecause more free time without a meaningful decrease in income increases quality of life? You can also run your own company and earn extra during the off time.
- awfgylbcxhrey 10y agoBecause more free time without a meaningful decrease in income increases quality of life? I was asking specifically about 'fiscally' and, in particular, the mention of marginal tax rates.
- mstade 10y agoYou're extracting more value by working less, freeing your time up to do other things. Those other things may well end up netting you more money over time (working on your own company, for instance.) As well, depending on where you live and work, you may also end up paying a different tax rate on holiday pay over regular pay. If so you may be able to accrue those holidays and eventually receive a lump sum payout that is in effect "cheaper" than regular pay. The difference can be significant, particularly if your income is in the upper brackets.