How many Tax Brackets should there be?

[LiberalFighter]

Currently there are 6 tax brackets.

(2002 - Current)
Rate - - Taxable Income (Married filing jointly)
10% ---- 0 - $17,000
15% ---- $ 17,000 - $69,000
25% ---- $ 69,000 - $139,350
28% ---- $139,350 - $212,300
33% ---- $212,300 - $379,150
35% ---- $379,150 - and above

Under Reagan the tax brackets were as follows: 1981 (15), 1982 (13), 1983 (13), 1984 (14), 1985 (14), 1986 (14), 1987 (5), 1988 (4). There have been as many as 26 brackets in the past. From 1965 to 1976 the top tax bracket was 70% on income above $200k. The last time there was a 70% tax bracket was in 1981. A top tax bracket of 50% was only in effect from 1982 to 1986.

Federal Individual Income Tax Rates History (1913-2008)

[customerserviceguy]

1. Voted for the max

A graduated income tax is a good thing.

[saras]

2. More is better - the cost is trivial

Having more brackets distributes the unfairness around transition points of a graduated tax among more people, and in smaller quantities.

[Kaleva]

3. After the Wealth Tax Act of 1935 was passed

Those who made the equivalent of $250,000.00 in today's dollars were in the 13% tax bracket.

[LiberalFighter]

4. Back in the early days of taxes they actually had $1 million tax brackets.

They even had Victory Taxes during the war.

[slackmaster]

5. Two

Zero for people below some level commensurate with the cost of living, and 20% on everything above that.