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Even with paying the accountant and even if the higher bracket was 90% you’d still be making more by earning more. It’s hard to agree with your line of thinking
by xchaotic 7y ago
Even with paying the accountant and even if the higher bracket was 90% you’d still be making more by earning more. It’s hard to agree with your line of thinking but I have seen this often that people are willing to sacrifice quite a lot of money for “security” and “peace of mind”.
In practice you’d have more peace of mind with more money in the bank.
- rubber_duck 7y ago>Even with paying the accountant and even if the higher bracket was 90% you’d still be making more by earning more. Maybe I should describe it better - it is a special tax model - you pay a flat fee if you make less than X and that flat fee turns out to be ~5%. When you cross this threshold you no longer qualify for this model at all - you have to convert to standard taxation - I would need to increase my revenue by 20% just to break even and the extra hassle of doing that would mean that I need to increase it by 30% (at least) to be wroth it. So in my situation it just turned out to be a good limit where if I negotiate 10% more I just convert that money = free time for other stuff. I don't plan to stay below this limit forever (in fact next year I plan to go over) but the concept of having a target income goal and then letting the rest of your time go to personal life is really good for work life balance IMO.