re: Based on the graphic, which OTers have reached the top 1% mecca??

This is probably single income

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Please outline a specific situation where a accepting a raise would result in lower net pay. Thanks.

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Easy.

418,000 is in 35% tax bracket. This would mean 271,700 (65%) would be take home pay.

Let's say this person received a $5k raise bringing salary to $423,000 which is in 39.6% bracket. Take home pay would then be $255,492 (60.4%) .

So in this case, a $5000 "raise", would really result in a net loss of around $16,000.

Hope this helps

quote:

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418,000 is in 35% tax bracket. This would mean 271,700 (65%) would be take home pay.

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no... no it wouldn't.

quote:

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Easy.

418,000 is in 35% tax bracket. This would mean 271,700 (65%) would be take home pay.

Let's say this person received a $5k raise bringing salary to $423,000 which is in 39.6% bracket. Take home pay would then be $255,492 (60.4%) .

So in this case, a $5000 "raise", would really result in a net loss of around $16,000.

Hope this helps

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holy shite, you're serious

WRONG holy shite dude

Not all of your income is taxed at the higher rate.

35% $416,700 to $418,400 $120,910.25 plus 35% of the amount over $416,700
39.6% $418,400 or more $121,505.25 plus 39.6% of the amount over $418,400

C'mon guy, every man should understand how his earnings are taxed.

Not even on the chart yet

Don't really give a shite about top 1%, just want to catch my next flight at Signature Flight Support, Odessy Aviation, etc.