re: more info: Yes, it works the same in that way.
Otherwise, someone who earned $29,051 would run into a situation where they would end up with quite a bit less money in net income after taxes than someone who earned $29,050.
In this case, the person earning $29,050 would pay $4357.50 in taxes, leaving him with $24,692.50.
However, the person earning just one dollar more would pay $7262.75, leaving him with only $21,788.25.
That extra dollar in income would cost him $2,904.25!
However, because it\'s taxed in brackets, the person earning $29,050 actually ends up with $25,050 ($4,000 in taxes) and the person earning $29,051 ends up with $25050.72 ($4,000.28 in taxes).
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Otherwise, someone who earned $29,051 would run into a situation where they would end up with quite a bit less money in net income after taxes than someone who earned $29,050. In this case, the person earning $29,050 would pay $4357.50 in taxes, leaving him with $24,692.50.
However, the person earning just one dollar more would pay $7262.75, leaving him with only $21,788.25.
That extra dollar in income would cost him $2,904.25! However, because it\'s taxed in brackets, the person earning $29,050 actually ends up with $25,050 ($4,000 in taxes) and the person earning $29,051 ends up with $25050.72 ($4,000.28 in taxes).