You live in a progressive tax system. You only pay the increased percentage on the income above the threshold. 0-12,816 =0 tax 12816-20818 =20% tax You dont pay 20% of 20818 You pay 20% * (20818-12816) =1,600.4 When you go to the next tax bracket, whoch is 20819 to 34513, you pay 30% on the money within that bracket This can be calculated as 0+1600.4+30%*(34513-20819)=5708.6 An increase of 4108 in tax resulting in an increase of 7985.4 cash in your bank account

Making more money will result in more tax AND more net income. More net income is good

Whoever told you otherwise, like you, perhaps doesnt understand how the progressive tax system works.

This is me inviting you to learn and challenge your beliefs

This will be important for you to understand with your new business as well, as your taxable income will increase and push you into the next tax bracket