1

Careful examination of the "final" Tax reform plan, when focused on the single filing taxpayer that employs just the standard deduction/personal exemption seems to display sharp discontinuities in the progression of tax versus Adjusted gross income. Were these sharp inflection points intentional? enter image description here

  • Is there evidence that smoothing the sharp inflection points won't lead to drastically complicated law/rules? (tax rules are generally discrete) – user4012 Dec 17 '17 at 18:50
  • @user4012 (clarification) The tax owed and the difference between the current and conference plan were calculated against AGI in 50 dollar increments. The inflection points I'm focused on are at approx 170,000 and 423,000, where it seems to suggest that a change in "policy" occurs. In the initial portion of the curve (0 to 170,000) the tax owed decreases with increasing AGI (when comparing the conference plan versus the existing plan. But from approx 170K to 423K the reverse is true (the difference between the plans becomes smaller with increasing AGI). – BobE Dec 17 '17 at 19:54
  • After 420K, the curve reverts to the same relationship that was present in the 0 to 160,000 segment). The other little bumps are of little consequence... I just can't explain the change in slope at 170K and 423K - – BobE Dec 17 '17 at 19:56

You must log in to answer this question.

Browse other questions tagged .