WebOct 6, 2024 · But the system starts to lose its progressivity at the very highest levels: In 2015, the effective rate peaked at 29.3% for taxpayers in the $2 million-to-under-$5 million group, then fell to 28.8% for the $5 … WebMay 10, 2024 · 4. It greatly impacts people at the bracket cutoff levels. There is less of an incentive to earn more money in a progressive tax system if a household’s earned income is near a bracket cutoff. Income up to $37,950 is taxed at 15% or less in the United States in 2024. The next tax bracket goes to 25% for income between $37,950 and $91,900.

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