Posts Tagged "myth"

Myth: "I don't want a raise! It will move me into a higher tax bracket and my take home pay will be less!"

Posted by Preet on Jul 30, 2007 | 6 comments

I’ve heard this many times, even from my beautiful mother! This is not true! Let’s bring up my SAMPLE tax table as a refresher: $0-$10,000       = 0% Tax Rate $10,000-$20,000 = 10% Tax Rate $20,000-$50,000 = 20% Tax Rate $50,000-$75,000 = 30% Tax Rate $75,000+            = 50% Tax Rate You will hear some people complain that they don’t want their next raise because it will move them into a higher tax bracket and reduce their takehome pay and they will have less money to spend. Okay, the Government does some interesting things but they’ve figured this one out a long time ago. Here’s how it works:  Let’s take someone...