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View Diary: Obamacare & Bracket Creep (9 comments)

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  •  Nuances aside, am I not correct that (0+ / 0-)

    marginal tax rate increases only affect the 'next dollar(s) earned', whereas the next dollar earned in this case costs (or loses you) a ton (relatively)?

    •  valion - clearly when we discuss federal (0+ / 0-)

      income taxes marginal rates only apply to that income that exceeds the next lowest bracket amount, so you are always money ahead if you earn an incremental dollar. However, when it comes to benefits that's not the case. There are times when earning that next dollar, if you are at a ceiling for a benefit or subsidy, can cost you hundreds of dollars in benefits, which is in effect a tax, and an extraordinarily high one. That was the point I was trying to make, although not very well.

      "let's talk about that"

      by VClib on Tue Aug 06, 2013 at 03:22:15 AM PDT

      [ Parent ]

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