Everything You Must Know About Tax Brackets

Everything You Must Know About Tax Brackets

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Everything You Must Know About Tax Brackets
Tax Brackets Background


The progressive model of the Federal Tax system yields divisions within the model that enforce varied tax rates on individuals based on income. Those who earn a higher income will be taxed at higher rates, while those with low incomes will pay a lower percentage rate. The idea behind the progressive model is higher earners have an obligation (in addition to the tangible money to fulfill the obligation) to offer increased amounts of funding to government agencies to provide public services. Through a capitalistic marketplace these individuals were able to obtain a higher paying job. The increased salary, to promote a form of equality are taxed at higher rates.


2008 tax brackets


The 2008 tax brackets are a progressive model that were calculated based on a number of factors that go into an individuals income. The tax brackets attached to each year do not change in regards to structure, but the numbers and percentages vary based on the government's need, inflation, and the deduction amounts associated. For the year 2008, the tax brackets are aligned based on the following percentages: 10%, 15%, 25%, 28%, 33%, and 35%. individual who earned between $0 and $8,025 were taxed at 10% in 2008, while individuals (or married couples) who earned over $357,700 were taxed the highest rate of 35%.


Federal tax brackets


The Federal Tax system, which is enforced and imposed by the Internal Revenue Service is a progressive model--those individuals who have higher incomes will be taxed at higher rates, while those with less income will placed in a lower tax bracket. Each tax bracket is a percentage and represents the groupings tax rate or percentage amount of their salary they will owe to government. Tax brackets are based on a number of income factors, but the predominant theme is that higher incomes are grouped in higher percentage brackets.


2009 tax brackets
The 2009 Federal Income Tax Brackets range in percentage from 10% to 35%. The levy collected by the Internal Revenue Service groups individuals within one of the six tax brackets (each between 10% and 35%) based on a series of variables that revolve around the individual's income. Those persons that have a higher income will be forced to pay a higher tax rate. In turn, those with lower incomes will be taxed at lower rates. For instance, those individuals who make between $0 to $8,350 a year are taxed at 10%, while those who make more then $372,950 annually are taxed at 35%


Tax Brackets


The Internal Revenue Service levies taxes based on the progressive system. This Federal tax model places all taxpayers within a corresponding tax bracket. The tax brackets are percentages that represent tax rates. For instance, an individual within the 35% tax bracket is forced to pay 35% of their income to the federal government. These tax brackets, however, are enforced throughout the year in the form of employer's withholding wages during pay cycles.

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