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> if he worked too many overtime hours (which came around from time to time), would get into the next tax bracket and it wouldn't be worth it

By "not worth it", I suppose you mean that he valued the marginal increase in income less than the marginal decrease in free time – which is entirely subjective and different from person to person? I don't see your point.



In the higher tax bracket, he didn't work enough overtime to offset the increased taxes and ended up with a smaller check than if he worked less. At least that's what he claimed.


This is not possible with a progressive tax system. It is likely that he misunderstood tax brackets, average tax rate, and marginal tax rate.


Not with taxes alone, but welfare cliffs can kick in:

http://www.learnliberty.org/blog/the-welfare-cliff-and-why-m...




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