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View Diary: Do YOU understand how tax brackets work??? (124 comments)

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  •  not correct (6+ / 0-)

    not sure if you are being facetious. if so, please ignore.

    But if you earned an extra penny that put you in the next higher marginal tax bracket, your additional tax due to this would only be the higher tax rate percentage of that penny, not of your whole income. Bottomline, regardless of how close you are to these tiers, you make even a dollar more, you take home more.

    There is no income level point at which if you made a dollar more, you would take home less.

    •  Yes, I know. Bu I also (0+ / 0-)

      Know people who believe that the truth is that when you enter a new tax bracket, your tax bill jumps. They are convinced of that, and don't believe the "theory" we espouse here.

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