Megiddo on 26 December 2017
| pleaserecycle said: Assuming that you're full time, you will make $15 per hour * 40 hours per week * 52 weeks = $31200 in one year. This will put you in the 15% tax bracket when your taxes are due. The amount taken from every paycheck will also depend on any work benefits (like health insurance, 401k), union fees, etc. |
Careful when explaining stuff like this because many, many people do not realize that the progressive tax system brackets are intended so that only the money ranging in each bracket is taxed at that rate. So for example, if the hypothetical first bracket was from $1-$30,000 and was 10% then $30,000 would be taxed at 10% and the remaining amount ($1200 using your example) would be taxed at the next highest bracket rate (15%).
There is never, never, a case where you would be better off earning less money. Many people do not realize that. You are not better off if you earn $29,999 compared with $30,001 when it comes to taxes.
