[quote=“urodacus”]or you might get LESS pay from being pushed into a higher tax bracket.
stupid non-sliding rate tax system.[/quote]
Sorry, but, if I understand you correctly, you’re wrong.
When you move into the next bracket, only the portion of earnings above the bracket cut-off gets taxed at the higher rate, not the total earnings. This is why they have those adjustments you’re supposed to subtract out.
On the first 500,000 you pay 6%, on the next 400,000 you pay 9%, etc. Your true tax rate is 7.XX%. I forget the exact numbers.
This is a common misconception and I’ve heard it from colleagues many times. I finally crunched the numbers for salaries 1 NT on either side of a bracket cut-off, and guess what? You never take home less by moving into a higher bracket.
Think about it. If such a bizarre system did exist, you’d see millions of people with salaries 1 NT below the bracket cut-offs.