“A penny saved is a penny earned” is a proverb about money that has been cited in print since at least the 1600s. Many people have pointed out that a penny saved is worth more than a penny earned because the penny earned is pre-tax, and the penny saved is after-tax.
 
“Nowadays—believe it or not—a penny saved is more than a penny earned. How much more depends on the income tax bracket in which the person happens to fall,” wrote American financial journalist Merryle Rukeyser (1897-1988) in 1941. “A penny saved is actually more valuable than a penny earned because you don’t pay taxes on it” was posted on Reddit—Shower Thoughts on August 6, 2018.
   
     
12 August 1941, Detroit (MI) Evening Times, “Rukeyser Cites Harmful Effects Of Penalty Taxation” by Marryle Stanley Rukeyser, pg. 15, col. 2:
With the new emphasis on legislation for increasing the federal tax burden, old aphorisms need to be revised.
 
New Deal and national emergency conditions, for example, have rendered obsolete the old truism that a penny saved is a penny earned.
 
Nowadays—believe it or not—a penny saved is more than a penny earned.
 
How much more depends on the income tax bracket in which the person happens to fall.
 
31 January 1954, Jackson (TN) Sun, editorial page, pg. 4, col. 1:
Nowadays a penny saved is better than a penny earned, for it is a penny after taxes.
 
1 May 1954, Marion (OH) Star, pg. 11, col. 4 ad:
Today a penny saved is BETTER than a penny earned for it’s a penny after taxes.
Carson J. Cook, Agency
Life—Fire—Auto
 
June 1954, Ladies Home Journal (New York, NY), “How Would You Say It?” edited by John M. Henry, pg. 92, col. 3:
A penny saved is more than a penny earned. You’ve got to figure taxes in there somewhere.
—DICK CONWAY
in London, Ohio, Press
 
3 July 1980, Pittsburgh (PA) Post-Gazette, “He Gets 62.7 Milers Per Gallon…And He Says Anybody Can Do It” by Bohdan Hodiak, pg. 17, ol. 5:
A penny saved these days is worth much more than a penny earned. An average worker in the 20 percent tax category is actually taxed nearly 50 percent of his overtime pay.
 
Google Groups: misc.consumers.frugal-living
Incentive to save (was Re: Age?)
Brent Byer
3/14/96
In article <4i5ni0$h…@tulum.netmarket.com>,
Eiji Hirai wrote:
 
>Rhonda Hawkins

writes:
>:The prevailing theory seemed to be that a penny saved was not
>:only earned, but it collects interest.
>
>Actually, a penny saved is more than a penny earned, not even counting
>interest.
>
>Say you’re in a 30% income tax bracket.  If you *save* $1.00, and want to
>*earn* that same amount, you’d have to work $1.43 worth to earn the same
>$1.00.
   
Google Groups: misc.invest.financial-plan
Ben Franklin Was Wrong !!
4dtvman
8/26/03
…when he said “a penny saved is a penny earned”. Actually, a penny saved is worth more than a penny earned.  The following (although over-simplified) example will illustrate this principle:
 
Let’s suppose that Jack and Cindy have identical jobs and incomes. Let’s also suppose they shop at the same grocery store and pay about the same for groceries each week. Now, Jack gets a $20 per week pay increase and Cindy does not. However, about that same time, Cindy finds a new grocery store where she is able to save $20 per week on her grocery bill. Cindy is now better off financially than Jack, even though she did not get a raise and Jack did. How can this be? It’s because Jack has to pay taxes on his $20 raise and Cindy does not have to pay any taxes on her discount.
 
Twitter 
LightwavePublishing
@SurfTheLight
A penny saved is NOT a penny earned. It’s more! U have 2 pay tax on money earned, money saved is after tax money.
12:20 AM - 1 Jun 2009
       
Twitter
Jay E Troska CPA MST
@JayTroskaCPA
Replying to @andylevy
@andylevy A penny saved is a penny earned. Actually, a penny saved is MORE than a penny earned if one considers taxes. Yes.—Ben Franklin
1:39 PM - 1 Jul 2009
   
Twitter
Anastasia
@JediAnastasia
You didn’t earn the penny you have left. Plus, a penny saved is worth more than a penny earned - you don’t pay tax on it.
10:03 PM - 23 Dec 2009
 
Reddit—ProLifeTips
LPT: If you want extra motivation to save money, understand that a penny saved is actually worth MORE than a penny earned due to taxes.
submitted April 30, 2013 by NerdMachine
I know this is probably taking “a penny saved is a penny earned” too literally but it has provided me with motivation and that is why I share it.
 
Reddit—PersonalFinance
A penny saved. Worth more than a penny earned. (self.personalfinance)
submitted September 24, 2014 by cos_dashit
Let’s discuss the US tax system for a minute. (This probably will apply to other countries as well, but I don’t know.)
 
Businesses are taxed on profits. A lot of newly self-employed people that don’t have a financial background struggle with this.
   
Reddit—Shower Thoughts
A penny saved is worth more than a penny earned
submitted September 22, 2015 by RetoriskD
 
Reddit—Shower Thoughts
A penny saved is actually more valuable than a penny earned because you don’t pay taxes on it.
submitted August 6, 2018 by bootsy__collins