this post was submitted on 25 Nov 2024
43 points (95.7% liked)
Personal Finance Canada
1197 readers
1 users here now
Come and discuss anything related to personal finance, directly or indirectly, with other Canadians!
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
I understand how it works. But the extra income on each bracket is taxed at a higher rate, so the gross is definitely impacted more the higher you are. If you were taxed only at the lowest bracket rate for 150k you'd have a lot more to show for it.
Ah, gotcha! 100%. I've had conversations with people who were convinced that by working a few extra hours or getting a raise would result in them netting an overall lower amount than of they hadn't - they didnt understand that the new tax bracket only applied to the money they made within that new bracket.
I see what you're saying though - the extra money isnt quite as much as it would be of you were in a lower bracket. That $10k raise might only net you $6k instead of $8k.
For what its worth, I'm all for that - I think the more you make the more you should contribute to society. But that's an entirely different discussion!
I agree, the more you make the more you should contribute. The problem is wages and brackets stayed the same while costs have gone up. Buying power has declined year over year.