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Trudeau government to send $250 cheques to most people, slash GST on some goods (www.cbc.ca)
submitted 2 years ago by [M] to c/personalfinancecanada@lemmy.ca
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[–] 2 points 2 years ago (1 child)

I understand how it works. But the extra income on each bracket is taxed at a higher rate, so the gross is definitely impacted more the higher you are. If you were taxed only at the lowest bracket rate for 150k you'd have a lot more to show for it.

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  • [–] 2 points 2 years ago* (1 child)

    Ah, gotcha! 100%. I've had conversations with people who were convinced that by working a few extra hours or getting a raise would result in them netting an overall lower amount than of they hadn't - they didnt understand that the new tax bracket only applied to the money they made within that new bracket.

    I see what you're saying though - the extra money isnt quite as much as it would be of you were in a lower bracket. That $10k raise might only net you $6k instead of $8k.

    For what its worth, I'm all for that - I think the more you make the more you should contribute to society. But that's an entirely different discussion!

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