Tax brackets

- Let's talk about income taxes. Income tax accounting is its own specialized field. With income tax accounting there's an important element of income tax compliance. You have to make sure that you are obeying the law. There's also the element of income tax planning, meaning that you want to try to structure your affairs so that you don't have to pay any more income tax than you are legally required to pay. And of course, for you and me, there's just a routine element of filling out our income tax form each year. To facilitate our discussion of income tax systems I have designed a very simple income tax system that contains the important elements of all income tax systems around the world. In this simple system for income from zero to $50 you don't pay any income tax at all. You are allowed to make that money tax free. This feature is common in governmental tax systems around the world. Now, in my system, for all income…