Chicago Isn't Broke Enough? Universal Basic Income...

[QuantaFille]

Um... wow.

To be fair, it was a little while back last time it happened to someone I know personally. It's never happened to me since I've always been in the same tax bracket, but there is a bit of overlap between them where you actually take a pay cut on the way up.

[KingsGambit]

To be fair, it was a little while back last time it happened to someone I know personally. It's never happened to me since I've always been in the same tax bracket, but there is a bit of overlap between them where you actually take a pay cut on the way up.

Are you sure? My understanding has always been that this is impossible because the higher tax rate only applies to money earned above that specific threshold, which is backed up by everything I can find: https://www.investopedia.com/ask/ans...net-income.asp

[RumTumTugger]

Where do you get this insanity from? Have you considered checking yourself into a psychiatric facility?

still using a mirror instead of a monitor i see. the only Insanity are those that think Government can sustain this socialistic policy. Margaret Thatcher once said that "The trouble with Socialism is that eventually you run out of other people's money." Which is something Greece learned the hard way and it's people are still feeling the effects of that lesson. As shown in this Article from the Guardian.

[Teallaura]

Are you sure? My understanding has always been that this is impossible because the higher tax rate only applies to money earned above that specific threshold, which is backed up by everything I can find: https://www.investopedia.com/ask/ans...net-income.asp

Net Income isn't the same thing as Take Home - remember, many people are entitled to refunds. that's because they paid more into the system than they were supposed to.

In the borderline areas - depending on withholding - yeah, it's perfectly possible to end up with less in your paycheck than before - the problem is that you withholding is based on the old calculations and not the new. You aren't actually losing that money - you'd still get it back at the end of the year - but it wouldn't be in the monthly paycheck until the withholding was adjusted.

[Tassman]

still using a mirror instead of a monitor i see. the only Insanity are those that think Government can sustain this socialistic policy. Margaret Thatcher once said that "The trouble with Socialism is that eventually you run out of other people's money." Which is something Greece learned the hard way and it's people are still feeling the effects of that lesson. As shown in this Article from the Guardian.

[JonathanL]

Are you sure? My understanding has always been that this is impossible because the higher tax rate only applies to money earned above that specific threshold, which is backed up by everything I can find: https://www.investopedia.com/ask/ans...net-income.asp

Isn't it possible that there are cases where the one who's in charge of calculating and paying out wages (no idea what the proper term is for such a person in English) simply applied the higher tax rate for the lower tax bracket, simply by oversight, or sheer incompetence?

ETA:

I'm not sure, but I think what Teal is saying in the quote below is close to what I'm trying to say, but with fancier words:

In the borderline areas - depending on withholding - yeah, it's perfectly possible to end up with less in your paycheck than before - the problem is that you withholding is based on the old calculations and not the new. You aren't actually losing that money - you'd still get it back at the end of the year - but it wouldn't be in the monthly paycheck until the withholding was adjusted.

[Sparko]

socialism.jpg

[QuantaFille]

Net Income isn't the same thing as Take Home - remember, many people are entitled to refunds. that's because they paid more into the system than they were supposed to.

In the borderline areas - depending on withholding - yeah, it's perfectly possible to end up with less in your paycheck than before - the problem is that you withholding is based on the old calculations and not the new. You aren't actually losing that money - you'd still get it back at the end of the year - but it wouldn't be in the monthly paycheck until the withholding was adjusted.

Yeah, the take home pay is what I was referring to. This was also maybe 15 or 20 years ago, so maybe they've fixed it by now? I don't know. I only mentioned it because it's the kind of stupid thing we sometimes end up with in our tax codes.

[RumTumTugger]

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That is exactly what Tass and Starlight want you to believe and when you bring up where it didn't they handwave what the real reason it doesn't work I'll say again what Margaret Thatcher said. "The trouble with socialism is that eventually you run out of other people's money"?