What would people think of a third income tax rate? Say three rates: 20-30-40?
The UK have 3 rates, the USA have 6 rates.
The advantages are:
(1) more progessivity in the tax system
(2) tax reliefs could be given at 30% to everybody, not at 20/41 to different groups
(3) you wouldn't suddenly jump from paying a reasonable 20% to a penal 41%. You would move up a bit to 30%, and if your income increased by a lot, then to 40%
(4) overtime, or extra work, would be more attractive to a lot of people
The UK have 3 rates, the USA have 6 rates.
The advantages are:
(1) more progessivity in the tax system
(2) tax reliefs could be given at 30% to everybody, not at 20/41 to different groups
(3) you wouldn't suddenly jump from paying a reasonable 20% to a penal 41%. You would move up a bit to 30%, and if your income increased by a lot, then to 40%
(4) overtime, or extra work, would be more attractive to a lot of people