I agree, and I have my own stories to tell (like my foodstamps admin telling me to spend my tax return as quickly as possible or I'd lose foodstamps; which is doubly perverse).
A for tax brackets, why do they exist. I think our mathematics is advanced enough that things like tax brackets could be replaced by continuous functions. So its either by design or by lack of imagination that these discontinuities exist.
I've a friend from Finland who is vehemently opposed to any sort of means testing for any social program or aid. I see his point. Means testing creates all of the problems mentioned above ... and encourages those not eligible for them to view them as some burden that other people get but they pay for--fostering resentment.
at least in the US, income tax brackets are done in a mostly reasonable way. if the tax bracket is at $30,000 and you make $35,000, then you’d pay a low percentage of the first $30k and a higher percentage of the last $5k. so you can’t lose money by earning an extra dollar, at least only considering income tax.
it’s other benefits, tax credits, social programs, etc. that sometimes end up being designed with perverse incentives.
Making them continuous means requiring everyone to use a computer to calculate simple things like income taxes. Brackets aren't even a case of perverse discontinuities because the higher tax rate only applies to the money made in that bracket. Looking at just income taxes you never take home less money from getting paid more, it's a quite reasonable balance between computational simplicity and a rational progressive tax structure.
> A for tax brackets, why do they exist. I think our mathematics is advanced enough that things like tax brackets could be replaced by continuous functions. So its either by design or by lack of imagination that these discontinuities exist.
Progressive tax brackets do not have discontinuities such that your income net of income tax becomes lower as a result of moving up a bracket.
A for tax brackets, why do they exist. I think our mathematics is advanced enough that things like tax brackets could be replaced by continuous functions. So its either by design or by lack of imagination that these discontinuities exist.
I've a friend from Finland who is vehemently opposed to any sort of means testing for any social program or aid. I see his point. Means testing creates all of the problems mentioned above ... and encourages those not eligible for them to view them as some burden that other people get but they pay for--fostering resentment.