• shalafi@lemmy.world
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    5 months ago

    Let’s make it even more simple with some fake numbers to make it super easy.

    $0-$10,000 - taxed at 10%

    $10,000-$20,000 - taxed at 20%

    $20,000-$30,000 - taxed at 30%

    If you make 9 and get a raise to 11, seems like you would now pay 20% on all that! But no.

    The first 10 is still taxed at 10%, only the extra $1,000 gets taxed at 20%.

    If you go to 31, again, the first 10 is taxed at 10, the next 10 is taxed at 20, and only the extra $1,000 gets taxed at 30%.

    • Heavybell@lemmy.world
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      5 months ago

      $10,000-$20,000 - taxed at 20%

      Goll durnit, I know 10,000-20,000=-10,000! How I supposed to pay 20% tax on -$10,000?? Do they pay ME money?? Clearly everythin you said is BULLshit!

      (This is a joke just to be clear :P)