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0 pointspmontra9y ago0 comments

And btw there is a very good reason for those tiered systems. Imagine people making 26k and paying 14%. They end up with 22,360. If they get a 5k pay rise they make 31k, pay 30% and end up with 21,700. Would they want that raise? No thanks, but a system preventing some pay raises would be insane.

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3 comments · 2 top-level

galacticpony9y ago· 1 in thread

That's not how it works.

You pay nothing on the first 9700€

You pay 14% on the money you make above that, that is 14% of ~17k€

You then pay 30% on the money above that, that is 30% of the extra 5k.

pmontraOP9y ago

I understood perfectly how it works: it works how you explained.

My example was for a system that doesn't work in that way but switches from 14% to 30% for all the income, and not only for the amount above the threshold.

Maybe I should have worded it better but I take the downvotes I got as a demonstration of my point, that it would be insane.

glandium9y ago

The interesting thing is that many people believe it's that way, and it can be hard to convince them that it's not.

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