this post was submitted on 12 Nov 2025
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The best part is being in the bottom of the next bracket so your pay raise is actually a pay low
Isn't this incorrect? I always heard that, and then somebody told me no, you pay taxes on what you make up to the first bracket, based on the first bracket, then whatever you make after that you pay taxes on in the second bracket, up to the limit, etc
So yes youn pay more for what you're making above that, but you're still making more overall? You don't actually go backwards. I think.
Except for like assistance and stuff. That's all messed up. If you make just enough to get above the poverty line and lose Medicaid or snap or whatever, then you end up paying so much extra you go backwards as far as available funds. They've got the screws so tight, it actually makes more sense to manufacture ways to make less money, so you can stay just under the line. The gap is too big between needing assistance and being sufficient, you can't get from one to the other. At least that's what I've heard.
I'm in the US btw.
It just happened to me Your first say 10k is taxed in the 10k bracket but the rest it taxed in the next bracket and that percentage is higher than the 10k bracket. And then you don’t qualify for lower cost health insurance so you pay more and end up with less
Also US
Stupidity of the US health “system” aside, there is never a situation where a pay raise “spilling over” to the next tax bracket leaves you in a worse position in terms of take home pay.
The us health system is intrinsic to the US which is my experience though
That doesn't have anything to do with tax brackets, though.
The solution to assistance services is to have a scale where assistance is backed off slowly until it goes to zero, not have this cliff where you make $1 more than the maximum and you get nothing.