150 word min
Describe the various tax rate structures; how are they different and which do you propose for the various types of taxes?
The basic US tax structure presents a progressive rate system meaning that the greater the income, the higher the rate. In understanding the schedule for taxpayers who are married filing jointly, you can see that even a high income person still has the benefit of lower rates for the lesser layers of income. The rates range from 0 to 39.6% per the chart below. Each level is called an incremental rate, but average rates are often quoted.
10% on taxable income from $0 to $17,850, plus
15% on taxable income over $17,850 to $72,500, plus
25% on taxable income over $72,500 to $146,400, plus
28% on taxable income over $146,400 to $223,050, plus
33% on taxable income over $223,050 to $398,350, plus
35% on taxable income over $398,350 to $450,000, plus
39.6% on taxable income over $450,000.
To understand average rates, let us say that if taxable income was $35,700, the average rate would ...
The 597 word discussion provides an overview of various tax rate structure for US individuals including a discussion about possible changes and other tax calculations for certain taxpayers.