A Reddit post recently blew up after one user shared a story about their friend who refused a $5,000 raise. Why? Because they thought it would push them into a higher tax bracket and actually make them take home less money.
The post, shared in r/mildlyinfuriating, included a text conversation where the friend said, “30% to 37%. So if I take it, I move into the next tax bracket and my overall income will decrease.”
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The Redditor tried to explain how taxes actually work, by explaining that “ONLY the amount you earn over the threshold is taxed at 37%.” Still, the friend wasn’t convinced, responding, “Yes, ONLY the amount I earn over the threshold is taxed at 37%, but since 37>30, my next income goes DOWN.”
Frustrated, the Redditor pointed out the mistake, but the friend refused to accept it, replying, “Lmao, you are dumber than rocks bro.” The exchange sparked a wave of reactions from Reddit users, with many expressing disbelief at how widespread this misconception still is.
One commenter summed it up: “That’s the thing with dumb people, they don’t think they are dumb. It’s the smart people who realize how much they don’t know.” Another added, “How do people this dumb end up in the 37% tax bracket? That is the real question.”
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Several users shared similar encounters with people who misunderstood tax brackets. One person recounted how a carpenter they knew refused to earn over a certain amount for years because he thought it would lower his income. Another shared a baffling experience: “A manager at my old job told my coworker not to push for a raise because ‘you’ll go up a tax bracket and be making less overall.’” They showed her the actual numbers, and she still insisted they were wrong.
Many users debated why this misunderstanding persists. Some blamed poor financial education, while others pointed out that misinformation spreads easily. One user wrote, “As a kid, I always heard adults saying they didn’t want to get into the next tax bracket. So, the only natural conclusion I could come to as a kid was that the tax bracket rate was on all monies. I assume many people grew up hearing the same nonsense.”
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