I don't know a lot about finance, but I am wondering where the idea that taxing based on 'brackets on income' came from? It makes more sense to me to tax everyone the same percentage of their taxable income. Can someone explain to me why the brackets work better than a percentage? Thanks!
Brackets are thought to be more fair, since people with more income are thought to be more able to pay more.
the widely used American does no longer have faith this sort of ingredient. The Tea occasion does. greater taxes on the rich do no longer reason unemployment -- yet your attempt to substitute a different fairy tale clarification manufacturers you as being only as lots of an financial illiterate because of the fact the Tea occasion. FYI: We have been exporting extra jobs in the Nineteen Eighteen Nineties than in the time of the Bush years -- and lots extra suitable than presently. however the selection o f obs in usa became starting to be then and unemployment became low. So your clarification is nonsense.somewhat of inventing fantasies to extra healthful your prejudices, bypass take a direction in undemanding economics and locate out what's actual happening.
I think our current bracket system is unfair . Some people pay 0 % and others pay more than 40 % Instead of giving breaks to some people and punishing others, there should be a flat tax on everyone , What happens if a person gets a once in a life time windfall or sells a business ? The government takes 50 % that year even though it was an event that took an entire lifetime to realize . If that person goes broke the next year , does the government give the money back ? Of course not .
Taxing in brackets is intended to lower the tax burden on lower income taxpayers, and is generally considered to be a feature of a progressive tax system. A flat tax percentage is considered regressive, as it places more of a burden on those with lower incomes. As an example, assume that everyone has to pay a flat rate of 25%. A family with taxable income of $100K will have after tax income of $75K. A family with taxable income of only $10K will have after tax income of $7,500. The percentages are the same, but the lower income family will lose much more of their food, shelter, and clothing budget to taxes than the higher income family.
the more you make the more you pay, so it is graduated based on the total earnings it is graduated so that those in between the sections are not taxed the same as those at each end, ie, the one on the low end of the bracket isn't taxed the same as the one at the higher end if it were a strict % that would be highly unfair to those earning less money
