alexgmcm comments on The Robots, AI, and Unemployment Anti-FAQ - Less Wrong
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Am I misreading this part? As in the UK the tax-rates are done on % of your income in a certain bracket, so you pay nothing on the first £15k, then 20% on £15-30k (I forget the exact brackets) then 30% on £30-45k and 40% on everything above that.
So if you were earning £19k a year for example you would pay nothing on the first £15k, then 20% of the £4k you earned that sits in the higher bracket. So you don't suddenly pay loads of tax as it only affects the income that sits in the taxed brackets so if you earned £35k you would pay (0*15)+(0.2*15)+(0.3*5)=4.5k in tax and so you avoid having any massive discrete leaps.
I thought that's how all progressive taxation systems worked as otherwise people could be better off refusing to take raises etc. and I'm almost certain that isn't the case anywhere in the world.
He's talking about effective marginal tax rates--the USA has a lot of welfare programs with hard cutoffs, which effectively mean more gross income can lower your net income until around $20k or so.