Return_of_Chippy@lemmy.world to Ask Lemmy@lemmy.world · 1 month agoWhat's the biggest misconception you think many people have?message-squaremessage-square220linkfedilinkarrow-up1100arrow-down10file-text
arrow-up1100arrow-down1message-squareWhat's the biggest misconception you think many people have?Return_of_Chippy@lemmy.world to Ask Lemmy@lemmy.world · 1 month agomessage-square220linkfedilinkfile-text
minus-squareDialectic Cake@lemmy.worldlinkfedilinkarrow-up73arrow-down1·1 month agoTax Brackets. “I got a pay raise and will now be taxed more and make less money than before the raise” If <=30k was taxed at 25% and 30+k taxed at 30% and you go from 30k to 31k a year, only the 1k is taxed at the higher rate.
minus-squareCookieOfFortune@lemmy.worldlinkfedilinkarrow-up19·1 month agoBenefit cliffs do exist however.
minus-squaredefrostedLasagna4921@piefed.ziplinkfedilinkEnglisharrow-up2arrow-down2·1 month agoIs this really a common misconception?
minus-squareRisingSwell@lemmy.dbzer0.comlinkfedilinkarrow-up3·1 month agoVery very common in Australia.
Tax Brackets. “I got a pay raise and will now be taxed more and make less money than before the raise”
If <=30k was taxed at 25% and 30+k taxed at 30% and you go from 30k to 31k a year, only the 1k is taxed at the higher rate.
Benefit cliffs do exist however.
This depends on the country
Is this really a common misconception?
Yes, unfortunately.
Very very common in Australia.