this post was submitted on 28 Aug 2025
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I had an economics teacher in high school who warned us that we’re better off at the higher end of a lower tax bracket than the lower end of a higher one, because a higher bracket being a higher percentage of taxation meant you’d lose so much more money that you’d be holding less in the end until you pass the threshold within that bracket where you get back ahead of the tax. An economics teacher.
this is true, at least for my income tax
If the tax isn't incrementing continuously but in discrete steps, this sounds kinda plausible to me... Also I know of certain hard limits in my country that will force you to suddenly pay some additional kind of taxes or loose certain privileges once you cross them.
This means that earning a single Euro more could lead to loosing hundreds or thousands in effect...