This is the same nastiness as a ‘progressive’ income tax. As always the middle gets the shaft, freedom goes away.
No kidding, the person after taxes who makes $60,000 basically makes $10,000 more than the person making $20,000 after taxes.
There is lots of disincentives to not rise in income for so little benefit after taxation.
The sad thing for me is I find my best way to make savings without taxation is by slot machine.
I saved about $8000 on penny machines this year. I read when bonus spins come, I 80% of the time pull my casino card before a payout so the casino thinks I lose big.
I accidentally made too big a bet twice and have $4000 taxable through two over $1200 pots.
I even was given a cruise for a week to the Caribbean for free. So $4000 added to my income taxable. About another $7000 legally earned non-taxable and a cruise.
I make about $140 an hour while at casinos untaxed. Legal and it sure helps. I don’t see the benefit of going for more large payouts and then having to deal with the IRS.