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thomascgalvin t1_iu13wwe wrote

Getting a pay raise can only ever result in a loss of income if it causes you to lose benefits. If you receive EBT, for example, and go over the income limit for those benefits, a pay raise can actually hurt you.

But if you're talking about income tax, a pay raise never results in less income. Ever.

This is because the tax rate is progressive. Some example tax bands:

Min Max Tax Rate
$0 $10,000 10%
$10,001 $20,000 20%
$20,001 $30,000 30%

If you earn $20K, you pay 10% on the first $10k, and 20% on the next $10K - not 20% on the whole thing.

And if you start earning $30K, you pay 10% on the first $10k, 20% on the next $10K, and 30% on the rest.

A pay increase never results in less income due to taxes.

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