- Evil_Shrubbery ( @Evil_Shrubbery@lemm.ee ) 19•3 months ago
This legit happened to a college of mine, at his first job (as engineer), it took me well into his second year of employment (the time when he got the second yearly income tax stats) to get him to understand what I’ve been explaining to him since he was offered a raise a few months after he started.
I tried, I really did, with charts, examples, my own income tax statement, … but no.
I never found out which part was bothering him, like theoretically, how tf …
- Kiosade ( @Kiosade@lemmy.ca ) 6•3 months ago
Unfortunately he’s probably drinking raw milk these days. IYKYK.
- SoleInvictus ( @SoleInvictus@lemmy.blahaj.zone ) 2•3 months ago
To anyone with the math skills, I just explain it as a piecewise function. It’s pretty easy to model.
- Evil_Shrubbery ( @Evil_Shrubbery@lemm.ee ) 2•3 months ago
Its not a complicated function. And he is an engineer, he had plenty of maths in uni.
- MeetInPotatoes ( @MeetInPotatoes@lemmy.ml ) English2•3 months ago
That’s not how that works.
- Zagorath ( @Zagorath@aussie.zone ) English18•3 months ago
It’s comparatively unlikely, but there are circumstances where this type of thing can be true. Because income tax is not the only factor that matters. For example, you might get put on too high an income to qualify for some sort of tax rebate or welfare programme. Or you might start qualifying for an additional tax that isn’t applied marginally.
As one specific example, in Australia we have the Medicare Levy Surcharge, which you pay if your income is above a certain threshold and you’re above a certain age and don’t have private health insurance. If those conditions are met, it applies to all your income. It’s a small enough surcharge (ranging from 0% to 1.5%, with 1% and 1.25% steps in non-marginal brackets in between) that there are almost no practical circumstances that you’d actually end up worse off taking a raise, but it is at least theoretically possible.
- Aussiemandeus ( @Aussiemandeus@aussie.zone ) 7•3 months ago
Yeah fucking Medicare levy.
It means I have private health and I hate the idea we are privatising our health system.
- Zagorath ( @Zagorath@aussie.zone ) 5•3 months ago
Just a side note, here I’m talking about the Medicare Levy Surcharge, which is actually an entirely separate thing from the Medicare Levy. That is a 2% levy that you can’t get rid of by having private insurance. (But can get reduced by having very low income, or can be exempt from if you’re not eligible for Medicare in the first place, e.g. if you’re not a citizen.)
- ramble81 ( @ramble81@lemm.ee ) 5•3 months ago
Yup. It’s called the “welfare (or benefits) cliff”. It tends to happen at the lower end and the. Again at the upper middle end. There are quite a few tax breaks in the US you can’t take once you pass an AGI of $160-175K. Depending on if you were taking them, a raise could technically result in less net income.
- ssj2marx ( @ssj2marx@lemmy.ml ) 16•3 months ago
badmoneyguy
username checks out
- istanbullu ( @istanbullu@lemmy.ml ) 6•3 months ago
someone failed at teaching this loser mathematics.
- Tja ( @Tja@programming.dev ) 10•3 months ago
Check his username before you eat the onion next time.
- Malgas ( @Malgas@beehaw.org ) English5•3 months ago
Way too many people don’t understand how marginal tax rates work.
- suburban_hillbilly ( @suburban_hillbilly@lemmy.ml ) 5•3 months ago
Just went through this with my dad. He got ‘right-sized’ about a year ago and has been job hunting. He called me (praise jeebus) to ask me for advice about negotiating a slighly lower starting salary because his offer on a new job was about $140 over the line into the next bracket and he didn’t want to ‘lose’ all that extra salary to taxes.
We spent about an hour on a video chat where I ended up pulling up the IRS page about it as well as going line by line through the tax tables so I could show him how it actually works. He was flabbergasted and kept asking how could every single person he knows be wrong about this.
- Draedron ( @Draedron@lemmy.dbzer0.com ) English4•3 months ago
Depending on the tax system that is an actual issue.
- Mycatiskai ( @Mycatiskai@lemmy.ca ) 3•3 months ago
I took a 50% pay cut and my partner took a job that paid 10% less than her previous job but we moved somewhere that we got a 500k house on 1+ acre of land instead of our 800k townhouse, no land with one parking spot.
Sometimes less is more.
In Canada?
- Mycatiskai ( @Mycatiskai@lemmy.ca ) 1•3 months ago
Yes, Vancouver before now I’m many hours north.