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Every year, millions of taxpayers look at the latest federal income-tax brackets and rates to see where their income falls and how much they might owe the IRS. For the longest time, there have been seven brackets, each with its own marginal tax rate.
But what if there were twice as many brackets?
That’s the crux of a recent proposal from the Roosevelt Institute. Tax policy fellow Samarth Gupta looks at the growing gap between the richest Americans and everyone else and asks whether the U.S. tax code should do more to close it. Gupta’s proposition: Double the current number of federal tax brackets to 14.
Under his analysis, that would mean adding seven new brackets for the nation’s highest earners. Why? Here’s more to know.
The case for more tax brackets
The federal tax system is currently divided into seven income tax brackets, with marginal rates ranging from 10% to 37%. But taxpayers don’t pay the top rate on all of their income. Instead, different portions of taxable income fall into different brackets and are taxed at their corresponding rates.
For 2026, single filers are taxed at the top 37% rate only on taxable income above $640,600. For married couples filing jointly, the 37% rate applies to taxable income above $768,700.
However, once a single taxpayer’s taxable income exceeds $640,600, for example, every additional dollar is taxed at the same 37% marginal rate, whether that person earns $700,000 or several million dollars.
That’s what spurs the argument for adding more brackets at the top: As income rises beyond the current 37% threshold, the tax rate doesn’t increase.
Every year, millions of taxpayers look at the latest federal income-tax brackets and rates to see where their income falls and how much they might owe the IRS. For the longest time, there have been seven brackets, each with its own marginal tax rate.
But what if there were twice as many brackets?
That’s the crux of a recent proposal from the Roosevelt Institute. Tax policy fellow Samarth Gupta looks at the growing gap between the richest Americans and everyone else and asks whether the U.S. tax code should do more to close it. Gupta’s proposition: Double the current number of federal tax brackets to 14.
Under his analysis, that would mean adding seven new brackets for the nation’s highest earners. Why? Here’s more to know.
The case for more tax brackets
The federal tax system is currently divided into seven income tax brackets, with marginal rates ranging from 10% to 37%. But taxpayers don’t pay the top rate on all of their income. Instead, different portions of taxable income fall into different brackets and are taxed at their corresponding rates.
For 2026, single filers are taxed at the top 37% rate only on taxable income above $640,600. For married couples filing jointly, the 37% rate applies to taxable income above $768,700.
However, once a single taxpayer’s taxable income exceeds $640,600, for example, every additional dollar is taxed at the same 37% marginal rate, whether that person earns $700,000 or several million dollars.
That’s what spurs the argument for adding more brackets at the top: As income rises beyond the current 37% threshold, the tax rate doesn’t increase.
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(Image credit: Getty Images)
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