Hacker News new | ask | show | jobs
by fortran77 407 days ago
There may be some cases--if a person is on the edge of being eligible for SNAP, or for SSDI for a dependent adult in their houshold, where getting a raise might actually make them poorer. It's wrong to say people do this because they're too stupid to know about marginal tax rates.
1 comments

My state fixed this so the marginal rate was never over 100%, but there is a rather wide range where the marginal rate is about 75%. For every dollar you earn, you keep 25¢, and are paying in 75¢ in the form of getting fewer refundable tax credits, food stamps, energy bill assistance, and so on. (If I include the energy bill assistance, the marginal rate is 85% in a few bands.)