U.S. CitiesCity-Data Forum Index
Happy Halloween!
Go Back   City-Data Forum > General Forums > Economics > Personal Finance
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
 
 
Old 09-08-2011, 02:01 PM
 
1,663 posts, read 1,447,912 times
Reputation: 1035
Quote:
Originally Posted by Alley01 View Post
If the job is also an increase in responsibility, absolutely. I actually have turned down a raise and ended up being the only one in my division at that time that didn't get laid off. So, depending on the company and the situation it may be a smart thing to do. I ended up getting a promotion and moved to the division I had always wanted to work in because my VP at the time thought it was admirable what I had done. He commented that he thought I cared more about just the job but the entire company. Which I do. I see it that if my company does well, I do well. IF we aren't doing well, why should I get rewarded for that?

thanks for the reply.
how did you go about rejecting the raise? did you ask for anything in return? (that would kind of defy the purpose of the rejection, i guess) how did you word it? how much/significant was the raise? do you remember?
did you reject it on the spot or did you consider it and then told them later?
Quick reply to this message

 
Old 09-08-2011, 02:07 PM
 
Location: Scottsdale, AZ
4,487 posts, read 9,959,087 times
Reputation: 3747
Actually there is ONE reason why I'd turn down a raise and I already know of 2 friends who HAVE taken promotions but turned DOWN raises with those promotions. Reason: Getting put in a higher TAX BRACKET!

This is especially common for married filing jointly because at around $140K (2012), you can be put in either the 25% tax bracket or 28% tax bracket. 3% can certainly make a fair difference in today's economy so it isn't always in ones best interest to take a pay raise.

I'm single and unless I decide to get married, I probably won't ever reach the top of my tax bracket to be put into the next highest one.
Quick reply to this message
 
Old 09-08-2011, 03:56 PM
 
Location: Keosauqua, Iowa
5,818 posts, read 6,006,223 times
Reputation: 6108
Quote:
Originally Posted by SpeedyAZ View Post
This is especially common for married filing jointly because at around $140K (2012), you can be put in either the 25% tax bracket or 28% tax bracket. 3% can certainly make a fair difference in today's economy so it isn't always in ones best interest to take a pay raise.
Yes, but you only get taxed at the higher rate on income over the level that puts you in the next tax bracket, not your entire income.

The 25% ceiling for a married couple filing jointly for 2011 is $139,350. At that level you pay 10% on $17K of your income, 15% on $52K, and 25% on $70,350. So if you are right at the ceiling and you get a $10K raise, you would pay $2800 in income tax for an increase in your net income of $7200. I don't see any reason to reject a pay raise for this reason.
Quick reply to this message
 
Old 09-08-2011, 10:36 PM
 
Location: NJ
17,580 posts, read 20,039,302 times
Reputation: 15382
Quote:
Originally Posted by duster1979 View Post
Yes, but you only get taxed at the higher rate on income over the level that puts you in the next tax bracket, not your entire income.

The 25% ceiling for a married couple filing jointly for 2011 is $139,350. At that level you pay 10% on $17K of your income, 15% on $52K, and 25% on $70,350. So if you are right at the ceiling and you get a $10K raise, you would pay $2800 in income tax for an increase in your net income of $7200. I don't see any reason to reject a pay raise for this reason.
Exactly.


SpeedyAZ - you may want to have a chat with your friends. They are screwing themselves out of money. Here is a good explanation:


Income tax bracket example
Consider a single individual earning $50,000. This puts him in the 25% tax bracket. That does not, however, mean that he pays 25% taxes on his full taxable income. Rather, he pays 10% on the first $8375 (bucket #1), 15% on the next $25,625 (bucket #2) and 25% on the remainder of his income (a partially filled bucket #3). In total, this works out to $8681.25 in taxes, or a “real” rate of roughly 17.4% (ignoring deductions, credits, and other adjustments).

If this individual got a big raise that pushed him into the 28% tax bracket, he wouldn’t lose anything. He’d pay 25% on the balance of bucket #3 (up to $82,400) and then 28% thereafter (until he hit the 33% bracket). As you can see, you have nothing to fear from moving up a tax bracket, and anyone who tells you different is either uninformed or trying to take advantage of you.
Quick reply to this message
 
Old 09-09-2011, 05:37 PM
 
Location: Boise, ID
5,368 posts, read 10,281,085 times
Reputation: 4695
I have never turned down a raise, but I also don't ask for them very often at all. I work for my parents in their real estate office. Since real estate is tough right now, I haven't asked for a raise in several years.
Quick reply to this message
 
Old 09-09-2011, 07:15 PM
 
Location: Eastern Washington
8,788 posts, read 22,231,138 times
Reputation: 4746
Quote:
Originally Posted by Thinking-man View Post
hi everyone,
i was wondering about what i'm going to do.....i work as an Engineer with 7-8 years of experience. I've been at the current small company for 2 years now and my review is up.
i've performed well over the past year, obtained my PMP, have several satisfied customers from the past year, and i'm sure that i will be offered a raise....but i'm content with how much i'm getting paid. It is more than 20k more than my friends working elsewhere, and the company is not doing as well as it could be doing right now (although things are turning around rapidly). The reason i'm considering declining the raise is the facts mentioned above, as well as the thinking about the higher paid folks being cut first, should there ever be a downsizing.....

my question to you is whether you'd ever turn down a raise, and what's the best way to go about doing that strategically if you were to do that? should i ask for something else instead? (like more Vacation time, etc.?)
I would think that a small company might be willing to give you the equivalent of a raise in paid time off, it's essentially the same thing.

I have definitely heard of people turning down promotions (from Engineer C to Engineer D, a higher grade) to avoid increasing their charge-out rate. If you are a C that's known to be as good as most D's but bill out as a C, it can work in your favor, particularly in a tight economy like we have now.

But again it depends on your boss in that small company.
Quick reply to this message
 
Old 09-14-2011, 04:17 AM
 
Location: Lincoln, CA
505 posts, read 879,074 times
Reputation: 495
I am sure that I'm the odd one out here, but I agree with your decision to decline the raise.

While it makes logical sense to take the raise (as you can see from the overwhelming "are you stupid?" response), there are many other factors that people don't really consider when it comes to the job. The questions you have to ask yourself are:

1) Do you really enjoy the job and the people there? If the business fails, it doesn't do anyone any good. The argument that "they wouldn't give you a raise if they can't afford it" doesn't always make sense because small businesses have to stay competitive to keep better talent. For all we know, your boss might be giving you a raise from his home equity loan just to stay competitive and keep the business doors opened.

2) Do you really need it? Sure everyone likes money, but if a raise in pay for you also means letting two other lower level guys go, you may have to look at things differently.

3) Trust your instincts. None of us here really know you, your job, your boss, or the co-workers and people you know. We type things on a computer screen and make wise cracks to kill time while we fight off insomnia, but at the end of the day, you're the one who's going to face your wife and your co-workers. You know the company situation well and I'm a firm believer that everything happens for a reason. Who knows, maybe by turning down this raise, you just saved a few others and maybe a year or two, the owner of the business will look back and say "Gee that Thinking Man guy did something no one else would and now that the company is doing much better, I should give him a more better salary."
Quick reply to this message
 
Old 09-14-2011, 05:30 AM
 
Location: Susquehanna River, Union Co, PA
885 posts, read 720,872 times
Reputation: 1109
Quote:
Originally Posted by daddiesgirl View Post
"Gee that Thinking Man guy did something no one else would and now that the company is doing much better, I should give him a more better salary."
What a beautiful idea, If it only worked that way most of the time.

I have turned down a raise and a raise with promotion. In both cases the offers were coercive; it was a sleight of hand that would have benefited the employer far more than me: my responsibilities were already increasing (OP said the same) and these offers were a *consolation prize*. I was also being maneuvered into relinquishing certain flexibilities and submitting to a more authoritarian contract in one case and in the other it was an opportunity to restructure the administration by moving people around like pawns. So yes, I have, but neither of these companies were impressing me and I soon left. Maybe your situation is much different.

Your justification that your friends make less seems really strange to me though. I've never understood this requirement to equalize every personal experience with some external mean. Salaries can be private and do not have to be perceived as esteem.
Quick reply to this message
 
Old 09-14-2011, 08:38 PM
 
Location: Lincoln, CA
505 posts, read 879,074 times
Reputation: 495
Quote:
Originally Posted by SusqueHappy View Post
What a beautiful idea, If it only worked that way most of the time.
Again, that depends on who you worked for. The OP mentioned it was a small business, not some faceless corporation who will push you to work harder for less. If you enjoy your work, love your boss and coworkers, then you're in a situation that is much different than one where you're constantly thinking you're being milked for your services. In your scenario, you quit the company later, so it doesn't sound like you cared much for them anyways.
Quick reply to this message
 
Old 09-15-2011, 07:10 AM
 
Location: Susquehanna River, Union Co, PA
885 posts, read 720,872 times
Reputation: 1109
One was a small company and the other was a large university.

I don't personally know anyone other than children of the parents' business who have been actually rewarded for their sacrifices; however, I do know many who were gently pushed into house-sitting and running personal errands for bosses, babysitting their children at work, being expected to clean the office, being expected to 'help out' new hires (both peers and superiors), being expected to contribute to the employers' charities ... and every manner of subordinating situations. Both in cities and in the country. By employers as large as the federal government and as small as one.

So a word to the wise, only the OP knows for sure.

EDIT: For the record, I do know that there are excellent people who can respect and cooperate with one another, at work and elsewhere.
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $84,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Personal Finance
Similar Threads

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top