this post was submitted on 26 Mar 2026
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[–] mkwt@lemmy.world 84 points 18 hours ago (2 children)

Just to be clear: with a marginal tax rate, if your income is $10,000,001, you pay $0.70 tax for the $1, and the rest of the $10,000,000 is taxed according to the lower tax brackets.

The first $50,000 of that $10 million is taxed just like the guy that only made $50,000.

The US tax system is slightly more complicated than this, but there's no situation where you can get stuck with a huge additional bill because you edged slightly into the next higher tax bracket.

[–] crunchy@lemmy.dbzer0.com 20 points 11 hours ago (3 children)

And we still hear people proudly saying they declined a raise that would put them in a higher tax bracket.

[–] lemmy_get_my_coat@lemmy.world 16 points 11 hours ago (2 children)

That's because there are a lot of fucking idiots out there

[–] Aganim@lemmy.world 1 points 6 minutes ago

It does depend a bit. The tax brackets are nonsense of course, but there are countries with allowance systems that don't fully decrease to zero as your income rises and at some point end in a hard cap. In those cases a raise might end up costing you more due to losing the last part of an allowance.

But that never withheld me from accepting a raise, you're going to have to push pass that threshold at some point anyway.

To me, they're lying to push a narrative. No one's turning down a payrise because of that. Only stupid people who have never been offered that kind of money would ever make that kind of claim. So, I agree They're idiots. Just in a slightly different way.

[–] DrPop@lemmy.world 2 points 9 hours ago

I understand those who do it because they will lose super benefits because even worth q kid i don't qualify for food stamps and if i was making enough to qualify i might decline.

[–] prole@lemmy.blahaj.zone 1 points 9 hours ago

I just do it because I really don't want the additional responsibilities and scrutiny.

[–] Quetzalcutlass@lemmy.world 45 points 18 hours ago

Yeah, getting screwed by income brackets only happens when you're poor and on assistance.

... Which is probably a big part of why they think it works that way for taxes, come to think of it.