Income tax brackets

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Why are the tax/income levels so random? Sometimes there’s a 2% increase between levels, and sometimes 10%. The first tax bracket is until $11k, but the ones after that seem completely arbitrary.

Is there a reason for these amounts? Wouldn’t it be simpler/better to just have even numbers?

In: Economics

7 Answers

Anonymous 0 Comments

Combination of things like percentage increases to income levels on brackets — eg. might have been set at even levels but then they get increased based on CPI increases or something similar so $40k with 3 years of 3% increases becomes $43,709.

Percentages are likely the result of some income-tied reason for levels, combined with political negotiations and such.

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