Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10.1 6/24/83; site cornell.UUCP
Path: utzoo!watmath!clyde!floyd!vax135!cornell!wally
From: wally@cornell.UUCP (Wally Dietrich)
Newsgroups: net.taxes
Subject: Re: Tax Bracket Question - (nf)
Message-ID: <7308@cornell.UUCP>
Date: Wed, 4-Apr-84 17:03:10 EST
Article-I.D.: cornell.7308
Posted: Wed Apr  4 17:03:10 1984
Date-Received: Thu, 5-Apr-84 02:04:59 EST
References: <2876@fortune.UUCP>, <289@charm.UUCP>, <7196@cornell.UUCP>, <155@homxa.UUCP>
Organization: Cornell Univ. CS Dept.
Lines: 39

[]

FLAME ON!

> >  Please look at the instructions for line 38, form 1040. One can either
> >  use the tax tables (which are discrete) or one of the tax schedules X,
> >  Y, or Z (which are continuous) to compute your tax.
> 
> Nope.  The instructions for line 38 say you must use the (continuous)
> schedules if your income is $50,000 or more or you use income
> averaging.  They then say:
> 
>   "If none of the above conditions apply to you, you MUST use the
>    Tax Table to find your tax."
> 
> So while it's true that added income that pushes you into a higher
> tax bracket still leaves you better off in general, the fact that
> the Tax Tables round your income to the nearest $50 introduces
> discontinuities.  
> ...
> 
> --Bruce Burger     AT&T-Information Systems     Lincroft, NJ

Thank you Bruce for helping me point out the falacies in the arguments of
mam@charm.UUCP (Matthew Marcus), wjm@whuxj.UUCP (MITCHELL), 
dys@homxa.UUCP (D.SIZE), dougs@tekecs.UUCP, and btb@hogpc.UUCP (B.BURGER).

I am constantly amazed by the amount of incorrect information on the net.
It just goes to show that you should never believe what you see here.
Fortunately, it is easy to find solution to this problem, all you have to
do is look at the instructions for line 38 in the 1040 form.

Flame off.

To Matthew, MITCHEL, ...:  Someday I will be in the %50,000+ income category
too, but until then I guess I'll have to put up with a discontinuous tax
rate!

                                        Wally Dietrich