You do understand they are marginal brackets, not absolute brackets right? Let's say a married couple makes $200k today of taxable income (after all the deductions). Today (and rounding for simple math), the first 18k is taxed at 10%, then the next $60k is taxed at 15%, then the next 80k is taxed at 25% and then the next 47k is taxed at 28% (total fed due = $43k). In the new plan, it would be 12% on the first 78k, and 25% on the next $122k, or $40k in tax due, $3k less than today.
Yes I do.
At the cusp a larger step results in crazier decisions.
Better to have more but smaller steps (kinda like The Calculus).
It’s not like we don’t have PCs to sort it out and run scenarios for intelligent decision making.
True. But decisions are made on tax brackets income falls in. The larger the ‘jumps’ in rates, the more impact.
For example, in deciding to withdraw from retirement accounts, a jump from 15% to 25% make it a bigger decision than a jump from 25% to 28%.