Originally Posted by whiterhino
WTF. My day is not going good.
I would delete all my posts to hide my stupidity but unfortunately you quoted them.
I think what Brewman is trying to point out is that your understanding of how tax brackets work is incorrect and no matter how you figure it out, you're wrong.
When a person moves up into a new tax bracket, only the portion of their income above the threshold is taxed at the higher rate.
So if person A earns $34,000 and is in the 15% bracket (which in this exercise cuts off at $34,999), their annual tax burden is $5,100.
If he gets a $2,000 raise and earns $36,000, $34,999 is taxed at 15% and the remaining $1,001 is taxed at 25% ($5,249.85 and $250.25 respectively) for a total tax burden of $5,500.10. His raise was $2,000 and his increased tax burden was $400.10. $2,000 > $400.10