Quote:
Originally Posted by SebC
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.
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You just raise the higher tax bracket % tax rate to claw back the discounts on the lower ones, such that high earners pay the same.