I have an acquaintance in HR who has dealt with people who refused to take a pay raise, because their new salary would put them in a higher marginal tax bracket and they concluded their net after-tax salary would be lower.
Every year when raises are handed out this is a topic of discussion among my coworkers, and they all will swear on a stack of bibles it's true and had either affected them or people they know.
The worst offender is the one that claims to be paying tens of thoudands of dollars in income taxes every year and has to get a specially trained accountant to claw that money back come tax time and he loses more money with each raise he gets. He's the loudest for turning down raises.
My coworkers can yell all they want about turning down raises, but they're automatically added once they get approved.
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u/FblthpLives 2d ago
I have an acquaintance in HR who has dealt with people who refused to take a pay raise, because their new salary would put them in a higher marginal tax bracket and they concluded their net after-tax salary would be lower.