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In the US, going up a tax bracket can't under normal circumstances lower your effective pay. The higher rate is only for the income over the floor: if a $1 rais
by bulatb 5y ago
In the US, going up a tax bracket can't under normal circumstances lower your effective pay. The higher rate is only for the income over the floor: if a $1 raise puts you over, only that dollar gets taxed at the new rate. It's possible you'll trigger an alternative tax regime like AMT or meet a benefit cliff, but you'll never make less money after tax just because your income went up.
- willcipriano 5y agoPhrased incorrectly, but I suspect OP means it's deminishing returns on dollars earned after a certain point. You keep a higher percentage of 100k vs 300k.