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US tax code is a strange animal. While in general you take home more if you earn more, the curve is not always smooth. There are several spot you suddenly lose
by yufeng66 9y ago
US tax code is a strange animal. While in general you take home more if you earn more, the curve is not always smooth. There are several spot you suddenly lose the ability to claim certain benefit as income increase. In a situation like that you could take home slightly less as your income increase. If your income is high enough, those doesn't apply to you. All you need to worry about it the different tax bracket.
- LockeWatts 9y agoVery very few things being claimed by the average person fall off immediately, almost all of them scale such that you are still netting an increase, even if that increase is less pronounced. In fact, I can't think of a thing where this isn't the case. Can you provide an example?
- softawre 9y agoAll of the people who would get jobs if it wouldn't cut them off of their free/cheap housing and food stamps? You either qualify for subsidized housing or you don't (at least in my state).
- josefresco 9y ago> the curve is not always smooth THIS If the tax code was easily understood, these steep/jagged areas of the tax curve wouldn't exist. Even my accountant seems to struggle with the amount of variables when I ask similar questions.
- dionidium 9y agoYes. This is absolutely a big problem. The incentives are all wrong here. But that's not really what we're talking about. We're talking about working people who aren't receiving any additional government assistance not understanding marginal tax rates.