Quote:
Originally Posted by TheMercenary
What?
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Exactly what I said.
There aren't many places in the tax system where earning an extra dollar will
decrease your take-home pay. And I would agree that any place that does happen should be fixed.
When you enter a new tax bracket, it only applies to the income in that bracket. I don't know the numbers offhand, but I'll make some up for illustration.
Brackets:
$0-$10,000 0%
$10,000-$100,000 20%
$100,000 and up 40%
If you make $10,000, you pay nothing.
If you get a $1 raise, your take-home
increases by 80 cents. It doesn't decrease by $2,000.
If you make $100,000, you pay $18,000 in taxes.
If you get a $1 raise, you pay $18,000.40 in taxes, for a take-home
increase of 60 cents.
Quote:
Originally Posted by TheMercenary
Further, the % goes up in 2012 in each income bracket.
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Except the 5.4%.
So your post verifies that my interpretation was correct, with some updated numbers.
Someone making $350,001 would pay one cent, or two cents in 2012.