3 ms·
I don't see how the tax rate impacts your inflation pace. Your net wage increases with the percentage raise you get as well. W * R * (1 - T) / W * (1 - T) = W *
by grenoire 4y ago
I don't see how the tax rate impacts your inflation pace. Your net wage increases with the percentage raise you get as well. W * R * (1 - T) / W * (1 - T) = W * R / W = R, no? (Wage, Raise, and Tax as the variables).
- travisjungroth 4y agoProgressive tax brackets make raises sublinear. If the bracket thresholds raise with inflation, it evens out. I don’t think they have. Round number example: $150k gross, $100k net and $100k of expenses. Expenses go up to $108k. If your top marginal tax rate is 50%, you need a $16k raise to match it. 10.6% raise (not 16% though).
- zionic 4y agoBingo. Inflation is a stealth tax with regressive (socially) tax curves.