The Obamanation

[Happy Monkey]

Originally Posted by TheMercenary

What?

Exactly what I said.

There aren't many places in the tax system where earning an extra dollar will decrease your take-home pay. And I would agree that any place that does happen should be fixed.

When you enter a new tax bracket, it only applies to the income in that bracket. I don't know the numbers offhand, but I'll make some up for illustration.

Brackets:
$0-$10,000 0%
$10,000-$100,000 20%
$100,000 and up 40%

If you make $10,000, you pay nothing.
If you get a $1 raise, your take-home increases by 80 cents. It doesn't decrease by $2,000.
If you make $100,000, you pay $18,000 in taxes.
If you get a $1 raise, you pay $18,000.40 in taxes, for a take-home increase of 60 cents.

Originally Posted by TheMercenary

Further, the % goes up in 2012 in each income bracket.

Except the 5.4%.

So your post verifies that my interpretation was correct, with some updated numbers.

Someone making $350,001 would pay one cent, or two cents in 2012.