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I'm posting this under Economics instead of Work and Employment intentionally, under sheer speculation that this group may have a greater number of followers who are tax savvy, versus a mixed or unknown bag in forums whose title does not convey anything finance-related.
I have noticed an odd behavior from working people, it's not laziness, because they hold full time jobs and are very productive, but it's what looks to be like a genuine fear of success or perhaps fear of the unknown.
Some are coworkers, some are friends. My friend posted on social media that he's seeking a job change, specifically stating the range of $19-26 per hour. I commented "So you'd turn down $27 an hour?", he replied yes. I privately messaged him and asked "Tell me if I'm being too nosy, but is there something specific you're trying to qualify for?" His response was very simple, "No. I just don't want to be in too high a tax bracket." Astounding.
I've had a coworker say that he doesn't want to work too much overtime because he'd reach a point where he's actually bringing home less money. I can't tell if such individuals are sincerely convinced these things are true, or if for some other reason.
It's widely available online that tax tables are progressive, so any notion otherwise can easily be dispelled. It's like being told "don't train too hard at the gym, you'll look like one of those body builders!"
What's next? "Don't work too hard, you might become CEO!" (Against my will? By accidentally working too hard?)
The guy who rented my space to open up a restaurant was like that. He complained to me he wasn't getting enough business. So I asked him: Did you advertised? "No." He said, "If I advertise I get a flood of customers and I don't have enough staff."
The guy who rented my space to open up a restaurant was like that. He complained to me he wasn't getting enough business. So I asked him: Did you advertised? "No." He said, "If I advertise I get a flood of customers and I don't have enough staff."
Being successful means you're not like everyone else. You're moving away from the perceived safety of the herd and that's scary to a lot of people. It's hour our brains are wired and it takes some effort to override that programming.
I'm posting this under Economics instead of Work and Employment intentionally, under sheer speculation that this group may have a greater number of followers who are tax savvy, versus a mixed or unknown bag in forums whose title does not convey anything finance-related.
I have noticed an odd behavior from working people, it's not laziness, because they hold full time jobs and are very productive, but it's what looks to be like a genuine fear of success or perhaps fear of the unknown.
Some are coworkers, some are friends. My friend posted on social media that he's seeking a job change, specifically stating the range of $19-26 per hour. I commented "So you'd turn down $27 an hour?", he replied yes. I privately messaged him and asked "Tell me if I'm being too nosy, but is there something specific you're trying to qualify for?" His response was very simple, "No. I just don't want to be in too high a tax bracket." Astounding.
I've had a coworker say that he doesn't want to work too much overtime because he'd reach a point where he's actually bringing home less money. I can't tell if such individuals are sincerely convinced these things are true, or if for some other reason.
It's widely available online that tax tables are progressive, so any notion otherwise can easily be dispelled. It's like being told "don't train too hard at the gym, you'll look like one of those body builders!"
What's next? "Don't work too hard, you might become CEO!" (Against my will? By accidentally working too hard?)
Also, if anyone has heard similar statements, or equally as remarkable utterances by colleagues, I'd like to hear them.
Welcome to the US educational system. People have no idea that they pay the same rate on the first money they earn, and only move into a higher tax bracket if they backfill the lower brackets. The guy looking at his pay stub may think he's losing money because of withholding tables, but he could keep the money by filing a new W-4, or get it back by filing an income tax return at the end of the year.
As Chatty Kathy says, "Math is hard." 22% of American adults are functionally innumerate. If they look at a number they just see a bunch of squiggles, and all they know about money is that they don't have any. Their idea of being able to afford something means, "Can I make the payments?" If they stumbled into success, how would they know it? I'm sure you have encountered business owners with no idea their business was failing.
I don't know what causes it, but a lot of people don't want to be a success and they get a bit panicky if it is suggested to them.
So many times, someone with a little business squeaking by, I will see something really obvious that will greatly increase their profit and they get freaked out when it is suggested.. oh no can't do that because.... and they struggle to find a reason.
I suspect that they are the same people who are whining that it is so unfair that others make more money than they do.
There is a very small percentage of the population willing to take a bit of a risk in order to better their situation.
Being successful means you're not like everyone else. You're moving away from the perceived safety of the herd and that's scary to a lot of people. It's hour our brains are wired and it takes some effort to override that programming.
Quote:
Originally Posted by Larry Caldwell
Welcome to the US educational system. People have no idea that they pay the same rate on the first money they earn, and only move into a higher tax bracket if they backfill the lower brackets. The guy looking at his pay stub may think he's losing money because of withholding tables, but he could keep the money by filing a new W-4, or get it back by filing an income tax return at the end of the year.
As Chatty Kathy says, "Math is hard." 22% of American adults are functionally innumerate.
I think it's a combination of both of these things. Changing your standard of living can change your social class, and that can be scary. But I think the innumaracy of the average person is an even bigger part of the explanation. Most people simply have no understanding of how tax brackets work, or what deductions actually do to a person's tax bill. I can't count how many times I've read comments in newspapers and magazines that claim "the rich" gain some outsized financial benefit from taking the mortgage interest deduction or the charitable donations deduction; they simply don't understand that giving away a sum of money only to get 25% of it back from the government in the form of a tax refund leaves a person with less money than keeping 100% of it and paying the taxes owed on it (even if that money is taxed at the highest marginal rate of 39%). And they don't understand that people who itemize aren't doing anything wrong if they plan their finances to take full advantage of legitimate tax breaks; they seem to see it as a form of cheating, as if it's the same thing as lying on your tax forms to claim money you have no right to. It's a very strange thought process.
I've had a coworker say that he doesn't want to work too much overtime because he'd reach a point where he's actually bringing home less money. I can't tell if such individuals are sincerely convinced these things are true, or if for some other reason.
My bet is that your coworker honestly believes that (which is scary).
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