YSK: In economics, a negative income tax (NIT) is a system which reverses the direction in which tax is paid for incomes below a certain level.(en.m.wikipedia.org)

posted 24 days ago

andyortlieb@lemmy.sdf.org

youshouldknow@lemmy.world

68 commentshide report

Sort:

Hot Top Controversial New Old

You are viewing a single thread.

View all comments View context

[ - ]

folkrav@lemmy.ca

5 points

24 days ago

The brackets are pretty simple. It’s percentages and subtractions. Think “buckets” that spill over in the next when they’re full, and each “bucket” has a larger percentage that’s taken as taxes. Keep the numbers small so its easier. Imagine that there are three brackets. 0-100$ pays 10% tax. 101-200$ pays 20%. 200$ and more pays 30%.

Someone who wins 150$ pays 10% on the money they made from 0 to 100$, and 20% on the 101st dollar until their last, so they’ll win 150-10-10=130$ after tax. They didn’t win more than 200$, so no money gets taxed at the third bracket’s rate.

Say that person wins 250$ next year. Their first 100$ will result in the exact same 10$ in taxes. Their 100th to 199th dollars will be in the second 20% bracket. Their remaining 50$ falls in the last bracket, so gets taxed 30%. They will therefore this year make 250-10-20-15=205$ after tax.

Said person gets a big promotion and is now making 1000$ the third year. Their first 100$ gets the same 10$ tax, same for their second 200$ with the same 20$ tax. They have 800$ left in the last bracket, which at 30% means 240$. So they’d be winning 1000-10-20-240=730$ that year.

permalink

report

parent

You Should Know

!youshouldknow@lemmy.world

Create post

YSK - for all the things that can make your life easier!

The rules for posting and commenting, besides the rules defined here for lemmy.world, are as follows:

Rules (interactive)

Rule 1- All posts must begin with YSK.

All posts must begin with YSK. If you’re a Mastodon user, then include YSK after @youshouldknow. This is a community to share tips and tricks that will help you improve your life.

Rule 2- Your post body text must include the reason "Why" YSK:

**In your post’s text body, you must include the reason “Why” YSK: It’s helpful for readability, and informs readers about the importance of the content. **

Rule 3- Do not seek mental, medical and professional help here.

Do not seek mental, medical and professional help here. Breaking this rule will not get you or your post removed, but it will put you at risk, and possibly in danger.

Rule 4- No self promotion or upvote-farming of any kind.

That’s it.

Rule 5- No baiting or sealioning or promoting an agenda.

Posts and comments which, instead of being of an innocuous nature, are specifically intended (based on reports and in the opinion of our crack moderation team) to bait users into ideological wars on charged political topics will be removed and the authors warned - or banned - depending on severity.

Rule 6- Regarding non-YSK posts.

Provided it is about the community itself, you may post non-YSK posts using the [META] tag on your post title.

Rule 7- You can't harass or disturb other members.

If you harass or discriminate against any individual member, you will be removed.

If you are a member, sympathizer or a resemblant of a movement that is known to largely hate, mock, discriminate against, and/or want to take lives of a group of people and you were provably vocal about your hate, then you will be banned on sight.

For further explanation, clarification and feedback about this rule, you may follow this link.

Rule 8- All comments should try to stay relevant to their parent content.

Rule 9- Reposts from other platforms are not allowed.

Let everyone have their own content.

Rule 10- The majority of bots aren't allowed to participate here.

Unless included in our Whitelist for Bots, your bot will not be allowed to participate in this community. To have your bot whitelisted, please contact the moderators for a short review.

Partnered Communities:

You can view our partnered communities list by following this link. To partner with our community and be included, you are free to message the moderators or comment on a pinned post.

Community Moderation

For inquiry on becoming a moderator of this community, you may comment on the pinned post of the time, or simply shoot a message to the current moderators.