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
There’s no practical need for them to be “nice and even” numbers, they are chosen/indexed to create a gradual change as taxable income increases. Keeping the rates lower for incomes below $100k benefits the middle class greatly. (it takes about $130k gross income to owe more than 10% of your total income in federal taxes for a married couple, and that’s a pretty comfortable income for a family in most of the country.)
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