Final answer:
Dontae's reasoning is flawed because he misunderstands how tax brackets work. Only the income within the higher tax bracket is taxed at the higher rate, and the income within the previous brackets continues to be taxed at the lower rates.
Step-by-step explanation:
Dontae's reasoning is flawed because he misunderstands how tax brackets work. When someone earns more money and moves into a higher tax bracket, only the income within that bracket is taxed at the higher rate. The income within the previous brackets continues to be taxed at the lower rates. In other words, earning more money will never result in taking home less money due to higher taxes.
For example, let's say there are two tax brackets: 10% for income up to $50,000 and 20% for income above $50,000. If Dontae is currently earning $49,000 and moves into the higher bracket by earning an additional $1,000, only that $1,000 will be taxed at 20%. The rest of his income up to $49,000 will still be taxed at 10%. So, his take-home pay will still increase even though he's in a higher tax bracket.
In summary, Dontae's belief that earning more money will result in being worse off due to higher taxes is incorrect. Higher taxes only apply to the income within the higher tax bracket, not the entire income.