As others have already noted, that's not how tax brackets work. The real problem might be government programs like Medicaid - it's hard to tell if eligibility requirements are inflation-indexed, and since it seems to be determined at the state level, I'm almost certain it won't be in every state. So it's possible that increased wages, while it still increases post-tax income, actually reduces net disposable income after taking Medicaid, CHIP, etc. into account.