I feel that “outgroup dumb” is shitposting but it’s from a real poll.
https://today.yougov.com/politics/articles/5057-understanding-how-marginal-taxes-work-its-all-part
Hmmm, I better send a suggestion letter to the ATO (Australian Taxation Office) to put the tax bracket breakdown directly into your return with the amounts populated.
Hey, they give us a breakdown graph of where our tax is going, this seems like it’s within the realm of possibility.
I think sadly there are also many people here who have no idea how tax brackets work…
this was pushed in the 80’s/90’s on conservative talk radio (iirc). strangely, it gets an ideological push from the phenomenon of income reduction resulting from lost welfare benefits as income increases. the brain correlates things irrationally.
These people are allowed to vote, and that is why we are all fucked.
I’m just in awe about those 28% and 33% tax brackets. I’m in the 49,5% bracket here in The Netherlands. That being said, I’m fortunate to be in it.
Where i live we have a system where if you take sick days, they are paid 80%. 20% reduction applies only to the days you were sick. Once I got sick at the end of a month and took the last 3 days of the month and first 2 days of the next one off and she freaked out I’m about to loose 20% of 2 month’s salaries. She was and is still convinced that 20% deduction applies to a whole month worth of salary even if you take one day off that month. She almost never takes sick days and she works in a hospital… She self medicates and works with patients even when she has a transmittable diseases. Best of luck to those who have serious health problems and then get a fucking flu on top of everything from hospital staff. She is 60+ and reading the law to her doesn’t change her mind. A couple years ago she had more serious health problems and took a week off for the first time in decades, even after getting a paycheck reduced only by 5% and not 20% her perception of this issue didn’t change. She misunderstood that system once 40 years ago and she is going to take that misunderstanding to ger grave. Real world has no influence on her beliefs.
That’s the general conservative mindset. It’s why lies work so well on them, get them to believe the lie and they’ll never let it go.
This is absolutely an educational failing. We barely cover taxes in school. At best it’s said once in a class, gets covered in a minor question on a test and if we get it wrong, no one notices. “We” probably still got a B on the test without any CLUE how taxes work.
Yet here we are, dismantling any nationwide effort to make education better.
A LOT of people think 99,999 tax is 27,999 and 100,001 is 29,000, even on the democrat side. If those charts are accurate, it’s probably damn close to 50% of US citizens.
I seriously don’t understand why we don’t have a mandatory class that covers taxes, T4 slips, investing, labour laws, budgeting, reading nutritional information on foods, etc.
WTF is T4 slips
Ah, sorry I slipped in some canadian
The nutritional stuff is like 5th grade science, about the time you should be burning peanuts with a bunsen burner.
I’ve seen a few schools that have an elective financials class. But I think they’re still trying to balance checkbooks.
The problem is it’s just one class and nobody takes classes seriously in high school. Most of them have forgotten the things that they used to know when it gets 20 30 40 years past there education.
It’s like we need some kind of driver’s ed test but for living
When you are talking large income to larger income, that makes total sense, but are there limits for access to things like child tax credits where if you go over you are no longer eligible, causing significant increase (I just looked, and it’s at $200k single of $400k jointly, so unless you have A LOT of children, I suppose there wouldn’t be a huge effect)? Similar to people on government assistance who go from getting full assistance to getting nothing at a certain income level?
The big one there is food and housing subsidies. The way way we have it set-up can create a situation where a raise can cost you benefits that are worth more than the raise. With disability benefits there can actually be limits on the amount of money you’re allowed to have in general, which means that disabled people can find themselves in places where not only do they need to avoid trying to find work that they might be able to do, since trying and failing can still make them need to restart the benefits application process or even pay back historical benefits, but they also need to reject gifts above a certain value and can’t prepare for any type of emergency, like a car breakdown.
It’s annoying because it creates a disincentive to do the things that would help people on assistance actually get off of it, when the people who push for those limits purport to want them for exactly that reason.
Tapering off benefits as income grows, but at a slower rate than the income growth creates a continuous incentive for a person on benefits to increase their earned income. (If you lose $500 in benefits for every $1000 in income, your $1000 raise still puts $500 extra in your pocket, instead of potentially costing you your entire $8000 food subsidy)Can’t do that though, because it doesn’t punish people for the audacity of needing help.
This is a big factor. A lot of people conflate less benefits with higher taxes because fear-brain just knows they both equal increased hardship in the end. They’re technically wrong but their statistically slightly more active amygdalas are responding to a genuine threat, just one that they’ve been very skillfully misdirected into helping worsen.
So an indoctrinated fear response that create a policy advantage for the very elites who created it.
Wow humans are so nice
tbh the more I learn and experience that’s most of the human experience. I had a Minister when I was young that said there’s really only two human emotions, fear and love, and that without significant intervention fear pretty much always wins. I’ve been working in psychiatry for almost a decade now and there’s lots of finer points to be made about human psychology but in the end it pretty much all does just boil down to fear and love.
He was an exceptionally good Minister, to the extent that for while I didn’t understand how common it was for people to be deeply betrayed by a church leader. It was not uncommon for people in the community to genuinely compare him to Fred Rogers (who was incidentally also a Presbyterian minister). Very similar background, temperament, points of advocacy, and even appearance and mannerism; if they hadn’t both been alive at the same time it almost might make me believe in reincarnation.
lol i wonder how much that is just guessing. they just coin flipped it
Thanks, Lemmy, now I’m “that Dad”. After reading this, I went to dinner with my two teens and one of their girlfriends, so of course I had to bring this up. All three have started working after school and will need to file their taxes this year so they need to know.
But holy crap is that a seriously uncool conversation
No source?
Don’t need one. The amount of times I’ve had to explain how fucking tax brackets work, I wouldn’t be surprised if the numbers were even more skewed towards the wrong answer.
This is how missingormation spreads though. If something lines up with your existing worldview then you just assume it’s true.
Trust but verify
Lol no. Verify then trust
And this why democracy won’t work. How can people votw in their best interests when they don’t know how basic taxes work
even if people were mega geniuses it wouldn’t matter, money talks, and it talks a lot louder than people
Tell me you don’t know how income taxes work without telling me you don’t know how income taxes work.
My question is who does their taxes then?
A lot of people don’t know anything about taxes and have their tax return done by an accountant, even if their situation is extremely simple (works one job, no taxable investments or capital gains, no investment properties, no foreign taxes paid).
Even if they did go through the trouble to do their own taxes, the IRS specifically instructs taxpayers to not calculate it themselves, but rather to use a “tax table” to lookup their income and next to it is listed their income tax amount.
What a fucking stupid, needlessly complicated and not accessible system
That’s the point
Shouldn’t it be physically possible to be taxed so much that your income lowers compared to what it was previously?
Like you would have to have a 20% bump in pay, and an increase in taxes that’s like 25-50% or something insane. Of course if you cherry pick data, and pick a high ceiling, and then just barely pass a threshold you can probably make it appear, but that would be a pretty well defined statistical anomaly. And, not very much money.
edit: and this is assuming that taxes literally just don’t work the way that they do, this is WITH broken tax logic.
of course, the idea of a progressive income tax is that at a certain point, it becomes untenable to hold so much money. But unless taxes are literally 100% it’s hard to make the argument that you’re “losing” money.
If the tax bracket for no taxes is $10k, you don’t get taxed if make under that.
If the tax bracket for 5% is $10-20k, and you made $15k, the first $10k is not taxed, but the $5k is taxed at %5.
So you would never make $0 after taxes, even if you made it into the hypothetical 100% tax bracket.
yeah, with how tax brackets actually work, this should be physically impossible, i’m just pointing out that even if it didn’t it would STILL have to be a pretty substantial increase in tax, that you could easily calculate.
How dumb do you have to be? By the time you make that much money you should, in theory, know the answer definitively or have a guy.
Almost everyone has a guy or uses some software. Those two things don’t help them understand and this misconception of how taxes work is but a small sample of how people form political decisions without any viable understanding of the situation they’re in or the repercussions of their actions.
Nobody’s just making out a check for 30% and mailing it off to the IRS.
For someone outside the American tax system, can anyone put the difference in approximate numbers?
Your local tax system probably works the same.
This all boils down to a common misconception about ‘tax brackets’.
To simplify, pretend there’s a 28% tax bracket up to 100,000 dollars, and a 33% tax bracket when you hit 100k. The first 100k is always taxed at 28%, no matter what you make, and it’s only the incremental amount that gets taxed heavier. So here in this example, that would mean tax burden would be 28,000.33 instead of 28,000.28. These are not the exact brackets or percentages, but it’s at least showing the right magnitude of increase versus total amount.
However, many people are “afraid” of bumping a higher tax bracket. They think the tax bill would go from 28,000.28 to 33,000.33. That the tax bracket bumps up all your liability. I remember growing up people saying “I have to watch out and not hit the bigger tax bracket, if I’m close then I need a big raise to make it worth it, or else the raise is going to cost me more than it would make me”. This a big driver of antipathy toward democrat tax policies, a belief that mild success will punish them, despite it only increasing on the incremental amount.
We took a huge hit in our coat of living when we fell off the benefit cliff. I know it’s lost credits rather than more taxes but it doesn’t really matter when you make more and struggle at least as much as before.
A lot of US benefits have “benefit cliffs” where making $1 more substantially reduces or even completely disqualifies a person from programs like SNAP (food stamps) or childcare subsidies or Medicaid. https://www.ncsl.org/human-services/introduction-to-benefits-cliffs-and-public-assistance-programs
It’s not surprising people whose families are directly affected by, or who know people affected by, benefit cliffs think the lawmakers set up taxes the same way.
True, though if we are talking about tax bracket going over 30 percent, that would be at nearly 200k, so well above those thresholds too. Of course the numbers aren’t 28 and 33, but that is the closest threshold to the example.
To be more specific the first 100,000 isn’t taxed at 28%. The 44 to 100k range would be, but below that will be taxed at lower percentages. The first ~10k you make is taxed at 10%, and then it increases throughout.
If getting specific, there’s no 28 percent or 33 percent bracket, so these are all examples rather than real figures. I did make a comment using real numbers, same general magnitude but just more specific about the brackets.
In exact numbers, 5 cents.
That one dollar in the 33% bracket has .33 in taxes instead of .28. So their obligation goes up .05 per every dollar in the 33% tax bracket.
