many years ago, when I taught intro econ, I would explain to students how with a marginal tax system, there is no way that increasing your income to get into a higher tax bracket, can leave you with less after-tax income. I would tell them it WILL be on the exam. - ThreadSky

deanbaker13.bsky.social • 101 days ago

many years ago, when I taught intro econ, I would explain to students how with a marginal tax system, there is no way that increasing your income to get into a higher tax bracket, can leave you with less after-tax income. I would tell them it WILL be on the exam.

Reposted from Dean Baker

yes, that is an ignorance exploited endlessly by the right.

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constantcait.bsky.social•101 days ago

I've worked in personal finance media for about a decade now and none of this surprises me. People are really dedicated to the idea that our tax system punishes people for making more money, despite all evidence to the contrary.

katiecannon.bsky.social•101 days ago

Musk is such a victim

raycandlelight.bsky.social•101 days ago

Clearly many of the 40% were preparing for a future in contrarian hot takes.

pblanchenay.bsky.social•49 days ago

My spouse and I unfortunately had to deal with a Norwegian lawyer who, we were shocked to discover, would have likely failed that exam.

deanbaker13.bsky.social•101 days ago

I would hold a review session where I would explain it again and again tell them THIS will be on the exam.

deanbaker13.bsky.social•101 days ago

Then I would have a question on the exam about whether increasing your income and getting into a higher tax bracket could leave you with less after-tax income than before. 40 percent would get it wrong.

bkeyser.bsky.social•101 days ago

Maybe we need another word for it - like, for example, tax-bracket rate.

insortediaboli.bsky.social•101 days ago

Propaganda is tough to beat when it’s in the popular zeitgeist

electproject.bsky.social•101 days ago

Sounds like me explaining to my political parties class Southern Realignment

fplynch.bsky.social•101 days ago

We watched the PBS doc on Wilmington 1898 a couple days ago and they were careful to explain what Republicans and Democrats were like back then.

cmerlin.bsky.social•101 days ago

These students were probably slightly better than the average voter. How do democratic forces overcome the dysfunctional information environment of people? How can we prevent falsehoods from becoming entrenched as stubborn priors impervious to new or contrary evidence?

katiecannon.bsky.social•101 days ago

Begin law schools and economics with:

Our Constitution just declared our legal unit of account.

Money is just an IOU.

Always & everywhere

Even if you decide to impose a self enforced limit by using pigs to represent money

phenobarbarella.bsky.social•101 days ago

How did that happen, as clear as you were about it? What accounts for four-in-ten getting it wrong?

lucytraveler.bsky.social•101 days ago

If it was an Econ 101 class, there’s a good chance at least half of that 40% just didn’t attend class/study sessions

drewkadel.bsky.social•49 days ago

Certainly some cut the class (though Dean pointed it out more than once in the semester). Some just don't register-esp if they've heard their dads grumping about higher tax brackets etc for a long time. AND they KNOW smart people do tax avoidance things to avoid higher brackets etc.

phenobarbarella.bsky.social•101 days ago

Now that, I’d believe. I just don’t know how someone who did show up and heard the explanation as well as the admonition the question would be on the test would *choose* to give an answer they know will be marked as wrong.

danielchomsky.bsky.social•101 days ago

It's hard to compete with an information system dedicated to complaining about the suffering of the rich.

fplynch.bsky.social•101 days ago

An inn keeper in/near Plymouth VT once* told me that she wasn't open during the winter snow season for this very reason. I was astonished that this was her take, thinking one, she runs a business, and two, how much money she was leaving on the table as a result.

*15-20 years ago

chossboard.bsky.social•101 days ago

In cases like this I always wonder if there’s a benefit cliff or obligation involved that they’re attributing to “taxes”. E.g. the ACA’s 50 employee rule is not a tax per se but I have heard it described that way by a small business owner.

fplynch.bsky.social•101 days ago

Possibly? This exchange predated ACA though, it would have to be something else. Also pretty sure it wouldn't have anything close to 50 employees, I don't think they had 40 rooms.

lucastosborne.bsky.social•100 days ago

📌

anontarioian.bsky.social•101 days ago

Yessssss!!! Plus I’d you are that rich maybe supporting the society that you live in is good. At least IMHO.

biknmusicmama.bsky.social•101 days ago

My aunt was a VP of finance and would have to tell her clients again and again “taxes just mean you’re making more money! More money overall is good for you”

andremayer.bsky.social•49 days ago

Not quite right, though — the UK for a time had a surcharge that pushed the top rate above 100%.

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