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Thoughts about a Progressive Tax Rehaul? (lemmy.ca)

submitted 1 day ago* (last edited 1 day ago) by [email protected] to c/progressivepolitics

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As the title goes. This would involve turning the tax levels / brackets into an exponential mathematical curve. One of the benefits off of the top of my head, is that people wouldn't be scared of their salary increasing just enough, to actually lower their clean income. Another one would be that you can lower even further the tax rate for middle / low class, because you (the government) would receive more from taxes. Any opinions/ideas for this?

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[–] [email protected] 1 points 22 hours ago* (last edited 22 hours ago) (1 children)

Thanks for the explanation, but keep in mind that this is not only about the US. I am Portuguese, and this is a problem here, AFAIK. Nonetheless, this would simplify the tax calculation.

[–] [email protected] 2 points 22 hours ago (1 children)

You obviously know better than I do, so take this with a grain of salt, but I was curious, and a quick google search turned up this source, which says:

Let’s say you are a tax resident in Portugal, and your gross annual income for 2022 is €30,000. To calculate your income tax liability for the year, you would follow these steps:

Determine your tax bracket: Your €30,000 falls into the 35% tax bracket. Calculate the tax owed on the portion of your income in that bracket: The portion in the 35% bracket is €9,678 (€30,000 – €20,322). To calculate the tax owed on this portion, you would multiply it by the tax rate of 35%, which gives you €3,384.30. Calculate the tax owed on the portion of your income in the lower tax brackets: The portion of your income in the lower tax brackets is €20,322 (€30,000 – €9,678). To calculate the tax owed on this portion, you would add up the tax owed at each lower tax rate. That gives you:

€1,033.80 for the portion of your income in the 14.5% bracket €1,259.96 for the portion of your income in the 23% bracket €2,901.30 for the portion of your income in the 28.5% bracket

Adding these amounts together gives you a total of €5,195.06.

[–] [email protected] 2 points 21 hours ago (1 children)

Hmm, you are right. But this is not knowledge that is taught to us. So, the main problem is politicians limiting the information given, no?

[–] [email protected] 3 points 19 hours ago (1 children)

It's not taught to us (in the US), either; in my opinion, this is the sort of thing that should be covered in the last year of primary school. There's so many general things you need to know to function in society as an adult that we're just expected to learn on our own.

[–] [email protected] 1 points 17 hours ago

Yeah. The little amount of financial literacy that I have, I got from experience; it was never taught to me by the school system.