3 ms·

and less than 20% in net income lost (due to income taxes usually being progressive).

• bradjohnson 5y ago
  Why should there be any loss in income?
  • smithza 5y ago
    If you negotiate with management to go from 40 hrs a week to 32 hrs a week, there is usually an expectation you will take a 20% paycut. Parent was saying that since income taxes are tiered, you will likely take a < 20% take-home paycut.
• usefulcat 5y ago
  ..and even less if you consider the value of benefits, like health insurance in the US
• PeterisP 5y ago
  On the other hand, if large parts of your income are tied in near-fixed expenses (e.g. mortgage), then 20% more net income can mean doubling your discretionary spending, and 20% decrease - almost eliminating it.