SkipCaptcha, Automoderated users, edit
8,856
edits
Changes
Jump to navigation
Jump to search
Line 16:
Line 16: − − ==Year 2007 income brackets and tax rates== − An individual's marginal income tax bracket depends upon their [[income]] and their tax-filing classification. As of 2007, there are six tax brackets for ordinary [[income]] (ranging from 10% to 35%) and four classifications: single, married filing jointly (or qualified widow or widower), married filing separately, and [[Head of Household (Tax)|head of household]]. − {| class=wikitable style="text-align:right" − |- − ! width=75 | Marginal Tax Rate − ! width=150 | Single − ! width=150 | Married Filing Jointly or Qualified Widow(er) − ! width=150 | Married Filing Separately − ! width=150 | Head of Household − |- − !10% − | $0 – $7,825 || $0 – $15,650 || $0 – $7,825 || $0 – $11,200 − |- − !15% − | $7,826 – $31,850 || $15,651 – $63,700 || $7,826 – $31,850 || $11,201 – $42,650 − |- − !25% − | $31,851 – $77,100 || $63,701 – $128,500 || $31,851 – $64,250 || $42,651 – $110,100 − |- − !28% − | $77,101 – $160,850 || $128,501 – $195,850 || $64,251 – $97,925 || $110,101 – $178,350 − |- − !33% − |$160,851 – $349,700 || $195,851 – $349,700 || $97,926 – $174,850 || $178,351 – $349,700 − |- − !35% − |$349,701+ || $349,701+ || $174,851+ || $349,701+ − |} − − An individual pays tax at a given bracket only for each dollar within that bracket's range. For example, a single taxpayer who earned $10,000 of [[income]] in 2007 would be taxed 10% of each dollar earned from the 1st dollar to the 7,825th dollar (10% × $7,825 = $782.50), then 15% of each dollar earned from the 7,826th dollar to the 10,000th dollar (15% × $2,175 = $326.25), for a total of $1,108.75. Notice this amount ($1,108.75) is lower than if the individual had been taxed at 15% on the full $10,000 (for a tax of $1,500). This is because the individual's marginal rate (the percentage tax on the last dollar earned, here 15%) has no effect on the [[income]] taxed at a lower bracket (here the first $7,825 of [[income]] taxed at 10%). This ensures that every rise in a person's pre-tax salary results in an increase of their after-tax salary, contrary to the popular misconception that being bumped into a higher tax bracket reduces after-tax [[income]].
→Year 2007 income brackets and tax rates: delete section as outdated
Since the Reagan Revolution of the 1980s, the top income tax rate paid by the rich has fallen sharply. However the proportion of GDP absorbed by federal taxes has remained constant at about 20%, in accord with Hauser's Law.<ref>See [http://online.wsj.com/article/SB121124460502305693.html David Randon, "You Can't Soak the Rich," ''Wall Street Journal'' May 20, 2008]</ref> Growth, however, has halved since the top rate of tax was cut. [[Liberal]] critics of [[Free Market]] capitalism point at this as evidence that cutting taxes does not benefit the whole of society, just the rich.<ref>http://thinkprogress.org/economy/2012/09/12/840641/tax-cuts-rich-economic-growth/</ref>
Since the Reagan Revolution of the 1980s, the top income tax rate paid by the rich has fallen sharply. However the proportion of GDP absorbed by federal taxes has remained constant at about 20%, in accord with Hauser's Law.<ref>See [http://online.wsj.com/article/SB121124460502305693.html David Randon, "You Can't Soak the Rich," ''Wall Street Journal'' May 20, 2008]</ref> Growth, however, has halved since the top rate of tax was cut. [[Liberal]] critics of [[Free Market]] capitalism point at this as evidence that cutting taxes does not benefit the whole of society, just the rich.<ref>http://thinkprogress.org/economy/2012/09/12/840641/tax-cuts-rich-economic-growth/</ref>
==States and Local Municipalities==
==States and Local Municipalities==