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I feel that “outgroup dumb” is shitposting but it’s from a real poll.
https://today.yougov.com/politics/articles/5057-understanding-how-marginal-taxes-work-its-all-part
This is the problem. My partner doesn’t want to work OT because he thinks it will cost him more in taxes. I explain why that’s not exactly true, but I can tell he’s not interested. Financial Literacy in the US is abysmal.
This is not a US specific issue, tbh. I've heard this weird belief repeated by all sorts of people.
it is a misinformation many people in power wants to keep because it lets republicans sell their policies to not tax the rich and bosses to not raise their employee's salaries.
You’re absolutely right. I cant speak for anyone else, as I don’t live there but I highly doubt the US is an exception.
Rather than being mad at each other, I want to make sure we hold the right people accountable! Governments, corporations, billionaires etc.
It’s a form of oppression.
I've had jobs (more than one), where working OT would result in my paycheck take home pay being less than if I had not worked the extra hours. And that's because it moved me into the next bracket, and more taxes were taken out. So why waste my time working OT?
Your partner is a moron who doesn't understand relatively simple math.
Nah. He’s not an idiot. But he is impatient. He doesn’t handle paperwork or anything involving patience well. (ADHD)
I also think taxes in the US are intentionally over complicated and confusing. I don’t struggle with things like that but I can empathize with people who do.
Strictly speaking the taxes in the US are not that complicated, but the credits, deductions and what not are. Still Tomato Tomato.
have you considered asking him why he even thinks that in the first place? You've literally put him into a spot where he's too stupid to even care about whether or not that response is logical or makes sense.
If he just doesn't want to work overtime that's fine, a lot of people don't, why would he justify it with stupid tax logic that he evidently must know is stupid? Seems like cope to me.
You cannot simultaneously "be smart" and then "be stupid" you are either stupid about something, or not. It's one of the two. I'm sure he's a pretty generally smart guy, most people are, but either it's an excuse he uses because he doesnt want to work overtime, or he's literally uneducated (and therefore stupid) about taxes, and chooses not to be educated about it, even though it would be financially beneficial to him, because that's literally how money works. (which would also make him pretty objectively stupid in that case) again, he may not care at all, but then why wouldn't he just be upfront about not caring?
"you can't make less money by making more money"
Unless you're poor enough to be on welfare. The Welfare Cliff is awful.
This can also apply to student loans when one person makes a lot more than the other.
Oddly enough it kinda does. OT can make you pay out more taxes on that one check since withholdings are calculated by check. Basically the government/payroll system thinks you're going to be making that every week so more taxes will be taken out.
In reality this only effects the size of your tax bill or return at the end of the year.
That's what people see and exactly why they think they got kicked up a whole tax bracket.
The whole notion of "kicked up a tax bracket" is also a misleading thing. Only a piece of your income goes into the "new bracket", all pay under the new bracket is taxed as they would have been used to.
For someone outside the American tax system, can anyone put the difference in approximate numbers?
In exact numbers, 5 cents.
That one dollar in the 33% bracket has .33 in taxes instead of .28. So their obligation goes up .05 per every dollar in the 33% tax bracket.
Your local tax system probably works the same.
It boggles my mind how many people who have had to pay taxes for decades even, don't understand how tax brackets work.
The only time you'll get screwed on making more is if you were getting some sort of socialized assistance and you make a dollar over the cut off for aid.
Yeah, the Welfare Cliff is the only place where this happens and it's unconscionable.
It is kind of by design to keep people from trying to get ahead at all
And they'll also refuse to believe you when you try to explain it to them
I used to be a supervisor at a psych hospital and had to regularly explain this to staff who were refusing overtime. They wanted to do it, sometimes desperately so because they needed the money, but they were utterly convinced that once they crossed 40 or 45k or whatever they would be taxed higher and make it all pointless. I felt like some just didn’t want to do ot, which was fine, but some legit keep meticulous records of their earnings to ensure they wouldn’t go over the line. I swore to them it didn’t work this way but they never believed me
Seen the same bullshit when I worked retail. Nothing will convince them.
It's easier to trick someone than it is to convince them they're wrong.
Should print out a poster infographic explaining progressive taxation and put it up on the wall in the break room
Yeah I am pretty sure they wouldn't understand this either
This infographic is kinda bad and would not convince someone who doesn't know how it works at all
Would have to be mandated by workplace regulations, no company is going to voluntarily educate their employees that more money has no downside.
I'll also say this doesn't help, it strangely avoids the actual numbers. It should state explicitly that his total taxes would be $1,600+$4,266+$2,827=$8692, and not $13200. Needs to include the scenarios specific results and contrasted with what the viewer would have assumed otherwise.
If you ever wanted proof that a population that doesn't understand math allows the billionaires to take advantage of them here it is. This is why education systems are under attack, because if you understood how taxes work you'd more likely support higher tax rates for the rich.
