Differential Tax Breakdown

[digitaldiscipline]

I found a very handy tool which explains the effective tax rate and breaks out the differential rate in a clear and concise manner, since people think "I'm in a higher tax bracket now, so I'll make less money, this sucks" if they get a rais that bumps them from one level to another.

... and are absolutely, completely WRONG. The higher rate only applies to the dollars earned in the applicable tax bracket.

http://www.moneychimp.com/features/tax_brackets.htm