Quote:
Originally Posted by kutulu
That's not how taxation works. When you move into a higher bracket only the money above the transition point gets taxed at the higher rate.
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Which would be the "stimulus"money.
If say 29,999 and below pays one thing and you made 29500, that stimulus puts you over into a different bracket where a greater percentage of your money comes out.
It's like overtime or holiday pay..... the money I make there gets taxed more and I barely see any difference. I have to work at least 13 hours overtime to see a true difference (enough to fill my tank and give me an extra case of soda or pack of cigarettes). The state, city, FICA and so on take more, almost the entirety of the OT or holiday pay. They will do the same to your "stimulus" money.
Nowhere does it say that money will not be taxed, it will, and if it puts you into a new bracket where a greater percentage is to come out, it will cost you money.