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The Facts About Income Taxes

The Facts About Income Taxes

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The Facts About Income Taxes
The United States Federal Income Tax is a progressive model which adjusts tax rates based on the individual taxpayer's annual income. As a result of this model, those who earn more money will be taxed at higher rates. 
The rates associated with the model will fluctuate based on the underlying political party's agenda and interpretation of tax law and various economic factors such as wage rates and inflation. Regardless of the rates, all individuals who earn an income and who are above the age of 18 years old must file an income tax statement with the Internal Revenue Service’s Department.
The income tax brackets are established as the rate the taxpayer pays on the "last dollar" they earn. The income tax is not levied based on a dollar figure, but instead, as a percentage of the individual's income. In 2010, the lowest tax bracket which was any income from $0 to $8,375 was taxed at a rate of 10%. As a result of this figure, there is no minimum annual income for which a person is required to file an income tax. If an individual obtains an income, whether through employment or a government program, they will be forced to pay an income tax.

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