Quote:
Originally Posted by opendoor
That's the problem though. That negligible benefit for higher earners still means losing a lot of tax revenue. If we were running surpluses or these were targeted tax cuts that would generate economic growth, then sure. But we'd be using billions of borrowed dollars every year to give higher earners some extra pocket change.
|
How would you avoid that though? Tax cut in the lowest bracket unless your total income is above a threshould?
So now you complicate the tax code where instead of a single rate per tax bracket you have multiple rates and have to figure out which one applies?
It would of course be better to just nudge the rates up in a higher bracket to get the result you want, but tax increases are politically toxic.