And we’re talking about progressive tax brackets here. ONLY the money over $400k will be taxed higher. As in if you make $405k per year, only the $5k will be taxed higher.
My mom got fired from her job after 30 years of service (because the factory closed). She received a severance pay, paid out over 6 months, and told me she wouldn’t be looking for a new job during that time because she’d have to pay double the taxes. I was like yeah but… you’d also be earning double the money?? I would understand that she wanted to take a break for a couple of months but if taxes were the reason, that just doesn’t make sense.
When I was in my early 20s there were a few personal finance things like this I didn’t understand. Here are a couple examples:
I refused a credit card limit increase because I thought that it was a trap to get me to spend more. I didn’t understand FICO scores are partly determined by “amount of credit” and “credit utilized”. I likely cause myself to later spend more money on higher interest rates when I got a loan because my credit score could have been better.
I was mildly upset I got $1000 as a bonus instead of a pay income because I thought that bonuses were “taxed at a higher rate” when instead they are simply “withheld at a higher rate” and it all washes out in the end when you pay your taxes at the end of the year.
But I grew up and learned these things in my 20s and didn’t carry those mistakes into later adulthood.
And we’re talking about progressive tax brackets here. ONLY the money over $400k will be taxed higher. As in if you make $405k per year, only the $5k will be taxed higher.
Exactly, the original headline is already in bad faith.
They will never understand that. I knew a guy who refused a raise because it would put him in the next tax bracket. I didn’t even try to explain it.
My mom got fired from her job after 30 years of service (because the factory closed). She received a severance pay, paid out over 6 months, and told me she wouldn’t be looking for a new job during that time because she’d have to pay double the taxes. I was like yeah but… you’d also be earning double the money?? I would understand that she wanted to take a break for a couple of months but if taxes were the reason, that just doesn’t make sense.
When I was in my early 20s there were a few personal finance things like this I didn’t understand. Here are a couple examples:
But I grew up and learned these things in my 20s and didn’t carry those mistakes into later adulthood.
these are the people who think progressive tax brackets means they make you pay extra if you’re white and straight