The ABC article is based on the premise that an individual's entire income is taxed at the same rate. If that were the case, it would be possible for a family

The ABC article is based on the premise that an individual's entire income is taxed at the same rate. If that were the case, it would be possible for a family earning $249,999 to have a higher after-tax income than a family earning $255,000, because the family earning $249,999 would pay a lower tax rate. But that isn't actually how income tax works. In reality, a family earning $255,000 will pay the higher tax rate only on its last $5,001 in income; the first $249,999 will continue to be taxed at the old rate. So intentionally lowering your income from $255,000 to $249,999 is counter-productive; it will result in a lower after-tax income. From here: http://mediamatters.org/countyfair/200903030013 http://mediamatters.org/countyfair/200903030013