Here's why Americans can't keep money in their pockets — even when they get a raise
www.cnbc.com
More than half of Americans earning more than $100,000 a year say they're living paycheck to paycheck, according to a report from PYMNTS and LendingClub. This may be a result of a sneaky behavioral phenomenon called lifestyle creep, which is when a person's spending habits expand as their income rises. The rise in the cost of living complicates matters, as incomes have not kept up with inflation. Watch the video above to learn more about why Americans struggle to keep money in their pockets.
    • Potatos_are_not_friends@lemmy.world
      0·
      2 years ago

      My raise was 100% eaten by taxes.

      Then with everything rising, I am now making a couple thousand dollars less than I did two years ago, even with all of those raises.

          • RememberTheApollo@lemmy.world
            0·
            2 years ago

            Then that would have been a good clarification to include in the statement. But when someone said their raises are eaten by taxes, one immediately assumes income tax.

            • DoomsdaySprocket@lemmy.caEnglish
              0·
              2 years ago

              To be fair, in places where income taxes are bracketed rather than in smooth percentages, it can happen. It’s much more common with bonuses and heavy OT to jump you up for a single paycheque, though.

              • RememberTheApollo@lemmy.world
                0·
                2 years ago

                “To be fair,” no it can’t, at least not in the US. The top tax bracket for income I think is around 37%. And the next lowest is in the high 20s, but I don’t know what the $ amount is, but I think you gotta clear a half mil + a year before you get to that 37%. So make a mil a year? 37%. 2 mil? 37%. No matter what you’re making you’re not getting to 100%. So I don’t know where you live, but here in the US there’s no way to hit 100% on personal income tax, the tax that’s being discussed.

                • DoomsdaySprocket@lemmy.caEnglish
                  0·
                  2 years ago

                  Not US.

                  Never heard of 100% taxing here, what I have seen is raises and promotions ending up in a slightly smaller paycheque. Whether that’s due to other factors such as a higher misaligned bracket of state medical insurance or benefits, union fees, I’m not entirely sure, it was more of a warning to watch your first couple of paycheques after a raise.