Never understood the idea of tax brackets. Why isn’t it just continuous? Computers are calculating the tax now anyway, not like it would be infeasible.
How would an infinitely adjusting tax percentage be intuitive? Brackets are simple. You pay x% on your income in some bracket and y% on your income in a different bracket. You only need simple multiplication and addition to figure out what you would owe.
A continuous bracket could be defined by a single equation. You’d plug in your income and you’d get out your taxation. No need to look up what bracket you are in.
Never understood the idea of tax brackets. Why isn’t it just continuous? Computers are calculating the tax now anyway, not like it would be infeasible.
Sounds like a nightmare to try to explain to someone. Technically it should work, but practically it might be difficult.
Why? To me it’d be much more intuitive. I find brackets quite confusing
How would an infinitely adjusting tax percentage be intuitive? Brackets are simple. You pay x% on your income in some bracket and y% on your income in a different bracket. You only need simple multiplication and addition to figure out what you would owe.
A continuous bracket could be defined by a single equation. You’d plug in your income and you’d get out your taxation. No need to look up what bracket you are in.
Could totally do a sigmoid function and just integrate over the income. But the brackets are just discrete approximation of that.
You still have brackets, but they’re at every $0.01