The point is, I've come across people for years who say they don't want to do overtime because it'll push me into the next tax bracket so it's not worth it, or I won't take profits in an investment now because I'll have to pay tax. All those people ignore the fact that tax is never greater than 50%, so for that extra $10k in salary that pushes you into the next tax bracket, you may 'lose' up to $4,600 (if into the top bracket) in the dollar, but you're still $5,400 better off than if you didn't take the extra overtime. Just like seizing an opportunity to take profits may realise a capital gain and push you into the top tax bracket in one year, but you're still better off as the money is now in your hands and you can use it rather than watching to gradually fading away as the sp retraces.
Don't be afraid of tax when making your investment decisions as after all 'it's better to have a tax problem than a revenue problem'!
KRR Price at posting:
3.3¢ Sentiment: None Disclosure: Not Held
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