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The Liberal Tax Myth

Sandy235 Wrote: Jun 17, 2012 4:47 PM
Back in the 60's, when offered overtime, I mostly refused. While the pay at time and one half was very good, it would push me into another tax bracket and my take home was less. This is one of the few ways that a wage earner can adjust his income to benefit taxwise. Usually it only applies to persons who are in sales or other occupations that can manipulate when and how they get paid. As an investor, you can delay sales of stocks and bonds (or accelerate) to meet tax goals. The poor shlub working for a paycheck has less flexibility.
gil422 Wrote: Jun 18, 2012 2:11 PM
"it would push me into another tax bracket and my take home was less."

When you move into the next bracket, only the income above the threshold of that bracket is taxed at the higher rate. I suppose you could get out of the range of the EIC or move into the Alt Min tax range, but for the most part, there are no easy ways to keep less by making more. I've only been paying taxes since about 1981, so it might have been different at the time.

If your tax rate goes up by a lot, will the amount of taxes that you pay go up by a lot as well?

You might think so at first, but as we'll show you in this post, the answer is that your taxes will likely go up, but probably by not anywhere near as much as you might have thought, and certainly not by anywhere near as much as the politicians imposing the tax hike might like.

To understand why, let's use a real world example....

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