What are the Federal Income Tax Rates

What are the Federal Income Tax Rates

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What are the Federal Income Tax Rates

The federal income tax is the dominant source of revenue for the Federal Government of the United States. Through this levy, the Federal Government funds necessary public services and pays for current expenditures. The income tax rate is used to fund the armed services and the wars that are currently being fought overseas. 

In addition, federal income taxes are also used to fund government programs such as Social Security, Medicaid, and other government agencies that are responsible for aiding lower income individuals or families in the United States. The income tax is a progressive system that fluctuates in regards to income tax rates attached to each bracket. The fluctuations exist through government policy, however, those earn higher salaries always have a higher income tax rate attached. 

Income tax rates are attached to the specific income tax brackets. The income tax brackets and the corresponding federal income tax rates are the foundation of a progressive taxing system. The current income tax rates range from 10% (for the lowest earners) to 35% (individuals who possess the highest tax rates). The 105 tax rate is attached to individuals who earn up to $8,375 or jointly filed applications that total up to $16,750. 

The federal income tax rates attached to the specific salary yield the individuals percentage tax rate. For example, if a taxpayer earns $10,000 per year, the 10% rate will yield an income tax of $1,000. Each successive tax rate--15%, 25%, 28%, 33%, and 35%--are attached with higher salaries. Although the percentages account for a large percentage of one's salary, the levy is collected throughout the year as the government withholds an individual's income every pay cycle.

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