4 ms·
> 50% so in practice you work 20% less hours and lose 10% of your post tax salary That's not how the math would work out. Suppose you make $100k in 5 days gro
by IkmoIkmo 6y ago
> 50% so in practice you work 20% less hours and lose 10% of your post tax salary
That's not how the math would work out.
Suppose you make $100k in 5 days gross and pay 40k tax, keep 60k net.
Suppose you drop to 80k gross, and suppose that the 20k you lost would otherwise have been taxed by 50%. That means you'd drop to 50k net, from 60k. That's a 16% drop, not a 10% drop.
But agreed, your argument still holds on principle, due to the tax rate the drop in net income will be smaller than the drop in time, which is a great argument!
However, there are other perspectives you can take as well. One is favorable for your argument, e.g. the drop in net salary (16%) comes at an increase of 50% of your weekend (from 2 to 3 days).
But also unfavorable, for example, perhaps your 'fixed' living expenses (e.g. rent, insurance, basic food selection etc) comes out at 30k net a year. Dropping from 60k to 50k, means your disposable income for recreational expenses (or deferred recreational expenses, through savings) drops from 30k to 20k, or 33%.
That's the downside of the whole story I haven't seen anyone mention in this thread yet. Particularly at lower salaries, fixed expenses can swallow up almost the entire paycheck leaving very little for savings, trips overseas to explore the world, fun things like hobbies, gaming etc. A lot of people spend 70-90% of their paycheck on rent, healthcare insurance etc and have 10% left over, taking off 1 day a week can really cut into that disposable income much more than 16% or 20%.