Marjorie Taylor Greene tried to force Ilhan Omar and Rashida Tlaib to retake their oaths on a Bible

[Gavin King]

Agree with CitizensVectron.... You should always be making more in total $s even if you hit a higher tax bracket for that paycheck or even the year. That's how a progressive tax system works: Everyone pays the same tax rate on the first $X, and a slightly higher rate on dollar $X+1 up to $Y.

 

Example:
Let's say we have some made up numbers like: below $30,000 is the 10% tax bracket, $30,000-$55,000 is 20% tax bracket, and above $55,000 is 30% tax bracket

 

Normal Work Week:

• If you make $1,000 / Week or $52,000 / Year, you will pay a 10% tax on the first $30,000 ($3,000), and then a 20% tax on the remaining $22,000 ($4,400) for a total Tax of $7,400 and take home of $44,600.
• If you convert that to a weekly basis, you will pay a 10% tax on the first $577 ($58), and then a 20% tax on the remaining $423 ($85) for a total weekly Tax of $142 and weekly take home of $858.

 

Overtime Work Week:

• If you now work some overtime, and make $1,200 / Week or $62,400 / year, you will still pay a 10% tax on the first $30,000 ($3,000), a 20% tax on the next $25,000 ($5,000), and finally a 30% tax on the remaining $7,400 ($2,220) for a total Tax of $10,220 and take home of $44,600.
• If you convert that to a weekly basis, you will still pay a 10% tax on the first $577 ($58), a 20% tax on the next $481 ($96), and finally a 30% tax on the remaining $142 ($43) for a total weekly Tax of $197 and weekly take home of $1,003.

 

Even though you were taxed $54 additional in an Overtime week, you earned $200 and took home an additional $146. Unless a company is doing something wrong, there's no way to have a higher tax rate cause the taxes to increase more than the increased income. It seemed like the thinking was the new tax rate of 30% would apply to the entire $1,200, which would be $360 in taxes and $840 take home, or $18 less than no over time scenario.... but that's not how the tax brackets work.