Progressive tax brackets make things complicated, in myt opinion.
I always like the idea of a large tax free bracket and then taxing. 30-40% for the rest. No tax deduction, everybody has to pay up. You could also go for fixed tax brackets like 15%, 25% and 35% and also no tax deductions.
The problem is that tax deductions/credits are a useful tool for guiding certain activity. We want people to put up solar panels, so we give a tax credit for that.
There’s a ton of twisty little ways the tax system makes everything fair-ish. Turns out, running a country of 330M people and an annual GDP of $25T is complicated. It’s not always a fair system, but it’s more fair than it looks at first glance.
Progressive tax brackets make things complicated, in myt opinion. I always like the idea of a large tax free bracket and then taxing. 30-40% for the rest. No tax deduction, everybody has to pay up. You could also go for fixed tax brackets like 15%, 25% and 35% and also no tax deductions.
The problem is that tax deductions/credits are a useful tool for guiding certain activity. We want people to put up solar panels, so we give a tax credit for that.
There’s a ton of twisty little ways the tax system makes everything fair-ish. Turns out, running a country of 330M people and an annual GDP of $25T is complicated. It’s not always a fair system, but it’s more fair than it looks at first glance.