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# Discussion of tax rate structures

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150 word min
Describe the various tax rate structures; how are they different and which do you propose for the various types of taxes?

#### Solution Preview

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 ...

#### Solution Summary

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.

\$2.19