Helpful tax tips or do I need to just bend over and take it?

[se7entse7en]

I never understood the 'tax bracket' argument. Don't you just pay more tax on the amount over the previous bracket?
ie.
17%.................25%
20,000-40,000.....40,001-60,000

If you made 50,000, you'd pay 17% on 40,000 + 25% on the remainder... 10,000.
You're still ahead... aren't you?

[joel]

[jeSteR]

[Duncan]

[se7entse7en]

Gotcha. I've just heard that argument made by others to say that you could net even LESS after a raise... which didn't make sense to me.

[Wetundies]

Corporate tax is at 25% upto 250,000. I know builders would incorporate multiple companies just to make sure none of them exceed 250k.

[Duncan]

[Duncan]

[se7entse7en]

[jeSteR]

[Wetundies]

I thought you can only claim upto 18% of you income in charitably donations? Don't remember, cuz i'm always in the lower bracket.

[nature boy]

i didn't even know tax worked that way. i remember someone telling me that if you make between 25-40k a year, you still bring the same amount of money home haha.

unless you don't pay taxes, in which case it's ok that your wife doesn't have a job.

[joel]

[jeSteR]

[nature boy]