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The more correct statement is "you never pay more in taxes by moving up a bracket" - though even that is not correct in all cases. There are a lot of things (I
by medvezhenok 2y ago
The more correct statement is "you never pay more in taxes by moving up a bracket" - though even that is not correct in all cases.
There are a lot of things (IETC for example, or benefits, or health insurance) which have $ cutoffs. Or tax breaks (i.e. electric vehicle credit) that only apply below a certain income. Exceeding those fixed points can certainly make you make less money.
One thing I ran into recently was fiscal incentives for homeownership (though not directly related to taxes) - there is a cutoff at a certain income level where if you stay below it you get a $10K credit towards closing costs. The tax code is full of things like that.
- reaperman 2y ago*EITC (nit)