This misconception is widespread enough that I can only think that it is deliberately perpetuated by the ruling class to save them money. The number of people who are convinced that going up a tax bracket could mean you make less total money is astounding, and many of them are like your uncle— utterly convinced to the point that being informed correctly sounds like naivety to them.
Another example is “Don’t work overtime, the taxes cost more than you make.”
Unless your marginal tax rate for your overtime is > 100%, that’s simply false. Given that all marginal income tax rates in the US are < 100% (that I know of).
This misconception is widespread enough that I can only think that it is deliberately perpetuated by the ruling class to save them money. The number of people who are convinced that going up a tax bracket could mean you make less total money is astounding, and many of them are like your uncle— utterly convinced to the point that being informed correctly sounds like naivety to them.
Another example is “Don’t work overtime, the taxes cost more than you make.”
Unless your marginal tax rate for your overtime is > 100%, that’s simply false. Given that all marginal income tax rates in the US are < 100% (that I know of).