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Why is it that the more I earn, the higher percentage of federal withholdings they take? (lemmy.world)

submitted 9 months ago* (last edited 9 months ago) by LemmyKnowsBest@lemmy.world to c/personalfinance@lemmy.ml

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One paycheck I earned only $77 and the govt withheld 9% of it.

Then I earned $2,000 and they withheld 26% of it.

Is everyone else experiencing this?

The less you earn, the less percentage-wise the govt withholds? The more you earn, the greater percentage they withhold?

At this rate, I fear that if I hypothetically would earn $8,000, they would withhold 100% of it. Do you see where this is going?

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[–] LemmyKnowsBest@lemmy.world 0 points 9 months ago

has probably never been taught how taxes work

I worked at H&R Block as a tax preparer for the 2001 tax season 😄 So I do kinda understand taxes even though that was a long time ago and I don't really think or care much about all the things I used to know anymore.

The last place I worked at in Nevada, I kept careful track and noticed 13% government deduction every paycheck. I noted it and figured my finances accordingly. No big deal.

But this California 26% government deduction is blowing my mind. It's outrageous. And someone else in the thread said to rest assured that the govt would never withhold more than 37%. But even 37% max is ridiculous. That's nearly half of our hard work turned into govt slave labor! Now when I'm at work I am consciously bitterly aware that 1/4 days I'm involuntarily working for free 😡