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.
A Discussion On Taxation
In order to prepare the new staff for the upcoming tax season, you have decided to hold 1-week training.
1. What type of tax rate structure does the U.S. tax system apply?
2. What are the individual tax forms, and what factors are used to determine which one to use?
3. What is taxable income, and how is it determined?