Question

What's the purpose of income tax brackets?

Answer 1

To ensure that citizens are taxed within their means. If everyone were taxed the same dollar amount, whatever this amount is, it would take a larger portion (percentage) of income out of poor peoples' pockets than rich peoples'. For example, $500 is more to a poor person than it is to a millionaire.

Answer 2

The purpose of income tax brackets is to allow individuals to adjust the taxes that they will pay. For example, you want to keep your income in the lowest bracket possible. With proper guidance, even as your income goes up, you will not necessarily be in the highest bracket.