> The result is that, in some circumstances, earning 1 more dollar results in losing thousands of dollars.

I think your new marginal rate only applies to anything over the limit that bumped you into a new tax bracket, so I don’t think this is right. A raise always gets you more money.

The exception being if it bumps you out of the government assisted healthcare bracket. Then, a raise could indeed be a loss.

Edit: I thought you were talking about income tax, but you might have been talking about business subsidies, which I know nothing about.