I've wondered for a long time why the American tax brackets are so convoluted in how they increase (10%, 15%, 25%, 28%, 33%, 35%, 39%) which ends up with a really weird spike when you go from lower middle class to middle class. It's a well known fact that a small or even moderate pay raise when you're already at the limit of the 15% tax bracket is never worth it unless you can get past the 'hump' because of the huge increase in taxation (10% increase, largest of any bracket).
I've said for a long time that reducing the increase on the bracket between high 30's and low 90's would be a good thing and would make economic sense, but I've never actually been able to work out the IMPACT. If you were to reduce that particular bracket's tax rate from 25% to 20%, so the curve is a little more even (10,15,20,28,33,35,39) how would it impact the American economy and tax revenue for the Government? Pic related.
And a further expansion on this, just a general inquiry, because I've never been able to get a straight answer. Does anyone know WHY the bracket jumps by 10% like this so low on the income scale? I'd imagine moving the jump to somewhere around 55,000/yr might have a similar effect, which is basically just a minor tax relief for the middle class, but WHY does it jump like this? It makes very little sense to me. In many parts of the country, $38,000 is fucking NOTHING. I make $37,000ish in the Denver metropolitian area and while I don't necessarily live paycheck to paycheck it's pretty fucking close. I can't imagine looking at someone who makes $166 more a month and saying "You need to pay 10% more in taxes, you're a little too well off".
>>2035946
completely serious answer.
>>2035959
Please no memeing
Tax brackets are the rate you pay for that bracket of income, you don't pay the highest bracket on total income
You're a retard, kill yourself
>>2035966
https://youtu.be/1gKX9TWRyfs?t=48
>>2035971
This
OP please look up what "progressive taxation" means and educate yourself
Polite sage
>>2035946
Google how taxes work
>>2035946
>a small or even moderate pay raise when you're already at the limit of the 15% tax bracket is never worth it
Why do stupid retards post about taxes that they don't even understand?
Getting higher income is always "worth it" because only the income in the next tier of bracket is taxed at the higher tier.
>>2035946
>It's a well known fact that a small or even moderate pay raise when you're already at the limit of the 15% tax bracket is never worth it
This has to be bait. No one who's ever done taxes could be this stupid, right?
>>2036205
He is right though. At that level you are approaching the 50% for every dollar earned mark. Not a great spot to be at.
As someone who is married,
hahahahahah taxes.
You stupid single fucks think you're so clever for avoiding marriage. I get a huge tax break and my wife is extremely frugal, more than even me, and always cooks and cleans for me.
>Taxes
hahaha