3 ms·
The snap qualification might be significant. The jump in tax brackets, probably not. Only the money above the 10% bracket gets an additional 2% (12%) tax.
by jrs235 4y ago
The snap qualification might be significant. The jump in tax brackets, probably not. Only the money above the 10% bracket gets an additional 2% (12%) tax.
- zeckalpha 4y agoThe tax bracket myth gets told to labor to keep their wages down. And it sticks! People get upset about raises!
- tyingq 4y agoI wasn't suggesting upping the wage was a bad idea, just that saying wage growth at the bottom outpacing inflation isn't as good as it's portrayed. The $~13k standard deduction is another example line that gets crossed. Medicaid and CHIP maximum income is another. Meaning we could use more wage growth, not less.
- Tcepsa 4y agoI think that's an important point that too many people gloss over, and I want to emphasize it with an example. Let's say the cutoff between 10 and 12 percent brackets is at 10k. If you make 10k one year, you pay $1000 in taxes. If you make $10,001 the next year, you don't pay $1,200.12; you pay $1,000.12. 10% on the first 10k, and 12% on the single dollar that you earned in that bracket.