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    tax reform

    so much is made about reducing the number of tax brackets. I don't understand how shrinking to 3 (or 4) marginal brackets would be beneficial. a lot of effort is currently involved in structuring T.I. so as to limit exposure to the next higher marginal bracket. wouldn't it make sense to have many more brackets ( not less ) ? a jump from 15% to 25% is (for example) significant. wouldn't having more marginal brackets somewhat mitigate the effect of this ? tax amounts are easy to calculate or read from a page table. tax "simplification" doesn't seem to have much to do with reducing the number of marginal brackets.

    #2
    Originally posted by RWG1950 View Post
    so much is made about reducing the number of tax brackets. I don't understand how shrinking to 3 (or 4) marginal brackets would be beneficial. a lot of effort is currently involved in structuring T.I. so as to limit exposure to the next higher marginal bracket. wouldn't it make sense to have many more brackets ( not less ) ? a jump from 15% to 25% is (for example) significant. wouldn't having more marginal brackets somewhat mitigate the effect of this ? tax amounts are easy to calculate or read from a page table. tax "simplification" doesn't seem to have much to do with reducing the number of marginal brackets.
    I believe the proposed Senate Bill has seven brackets.

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