4 ms·
They also use the term “earn” but the numbers they are throwing around are entirely after-tax. That’s not even poor reporting. That’s intentionally misleading.
by dpark 8y ago
They also use the term “earn” but the numbers they are throwing around are entirely after-tax. That’s not even poor reporting. That’s intentionally misleading. No one thinks that money paid to the government in the form for tax is unearned by the individual.
- extra88 8y agoPlus after tax can mean after one puts money into health coverage, retirement, a college fund, etc. That figure is much less scary as take-home than gross salary.
- Larrikin 8y agoThe money that it says I make in my contract has basically been a meaningless number to me most of my life other than a hard number I don't need to calculate when comparing jobs. It is only now that I have a "true" job after graduate where I make enough money to be able to set aside some money before tax.
- dpark 8y agoThe money your employer pays you is what you actually earn. The fact that you pay taxes on your earnings does not reduce them. If your tax rate doubles next year, your earnings don't go down as a result (though your take-home will). The IRS specifically defines earned income as what your employer pays you. https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income https://www.irs.gov/credits-deductions/individuals/earned-in...