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In a state government job, and we all just got a raise. For many in my department, that crossed them into a higher federal bracket. So naturally I heard people agonizing over how it is a "fake raise"

I had to explain how it is still a raise. And explain that you aren't taxed 22% on all 40k, you are taxed at 10% for the first 10k, and then 22% for the next 20k, making an over all tax rate of ~13%.

I also had to explain that all the 401k and pension withholdings also go up with that raise.

So I wanted to take a moment to remind you all that a raise is still a raise in compensation regardless of if you cross in to a new tax bracket. I'm sure there might be exceptions, but not for the average person.



Submitted October 02, 2019 at 07:14PM by 11PoseidonsKiss20 https://ift.tt/2nO7o7P

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