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Income tax brackets - example calculation - local - alternatives (Flat/Fair)
'''Income tax''' is a [[tax]] levied by [[government]] on the [[income]] of individuals and businesses. The income tax came to the [[United States]] by the [[Sixteenth Amendment]] to the [[Constitution]], and is levied by the [[Internal Revenue Service]]. [[Republican|Republican]] politicians, believing in a smaller, more efficient, and less expensive government, work hard to cut income taxes.
'''Income tax''' is a [[tax]] levied by [[government]] on the [[income]] of individuals and businesses. The income tax came to the [[United States]] by the [[Sixteenth Amendment]] to the [[Constitution]], and is levied by the [[Internal Revenue Service]]. [[Republican|Republican]] politicians, believing in a smaller, more efficient, and less expensive government, work hard to cut income taxes.
===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 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.
==States and Local Municipalities==
Most states and even some cities asses a tax on income, further increasing the amount of money withheld before a worker even sees their paycheck.
==Other Taxation systems==
Other state and national proposed tax systems include the Flat Tax and the Fair tax
*Flat Tax - a single income tax bracket that applies equally to all Americans
*Fair Tax - eliminates the income tax in favor of a consumption tax, most often proposed as a ~23% National Sales tax
==Sources==
==Sources==